Technology

Merrill Lynch Positive on Five Tech Stocks Even After Big Market Rally

Fleetmatics Group PLC (NASDAQ: FLTX) is a lesser known name to get the nod at Merrill Lynch. The company is a leading global provider of mobile workforce solutions for service-based businesses of all sizes delivered as SaaS. Its solutions enable businesses to meet the challenges associated with managing local fleets, and improve the productivity of their mobile workforces, by extracting actionable business intelligence from real-time and historical vehicle and driver behavioral data. With an improving economy and transportation sector, its products could have a big second half of the year and 2015. Merrill Lynch has a $45 price objective, and the consensus is set at $41.13. The stock closed trading Thursday at $29.57.

Intuit Inc. (NASDAQ: INTU) is a company that loves income tax time as its Turbo Tax product is one of the most widely used, and sales are expected to be very solid once again this year. The company is also well-known for the QuickBooks line of accounting software, which is used by firms big and small. Investors are paid a 1% dividend. The Merrill Lynch price target for this top software name is $93. The consensus target is $80.44. The stock closed trading Thursday at $79.36.

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VMware Inc. (NYSE: VMW) has been on fire and is a leader in cloud storage software. Its core business is in server virtualization, which allows virtual computers to run different operating systems and applications on one physical computer. That improves business efficiency and the utilization of data, and it saves on costs. Quickly, it has become a fast-growing business, one that is derived from licensing and service revenue. While competition is keen, the company is still a market leader. The Merrill Lynch price target for the stock is $120. The consensus target is $110.33. VMware closed Thursday at $96.70. Investors can also indirectly own VMware by buying the stock of storage giant EMC. The company owns more than 43 million shares of the stock. EMC closed Thursday at $26.51.

Clearly riding this wave of market enthusiasm gives all investors pause at this stage of the game. The Merrill Lynch top names are still reasonably priced compared to some of their counterparts, and they offer some good upside. Investors may want to scale capital in and buy partial positions now, and see if a summer pullback doesn’t give a better point to add the balance of the stock.