Goldman Sachs Changes on Conviction Buy List in Tech (DOX, ADP, SNCR, SVR)

This morning Goldman Sachs has announced some changes to its CONVICTION BUY LIST:

  • Amdocs (NYSE: DOX) is being added to the Americas Conviction Buy list with a 49% return potential to its target after its earnings report.  Recent order flows should give the company a healthy 2008 with accelerating revenue growth and limited macroeconomic headwinds.
  • Automatic Data Processing (NYSE: ADP) is being kept officially as a Buy rating at Goldman, but it is being pulled off of the Conviction Buy List as part of a "moving away from macro-sensitive trends."  ADP is down 15.5% since being added, slightly worse than the S&P at -14.3%, and it has underperformed the S&P over a 6-month and 12-month period.

In the larger Amdocs call away from macro-sensitivity, Goldman Sachs said it is also noting Synchronoss Technologies (NASDAQ: SNCR) as one of its best buy ideas (has a Buy rating).  Goldman is also becoming increasingly optimistic on Syniverse (NYSE: SVR) (although it has a neutral rating today).

Jon C. Ogg
January 23, 2008