Top IT and Data Stock Picks From Cowen for the Rest of 2014

Lee Jackson

With the demand for data and content growing exponentially almost every day, the top stocks in the tech sector are looking at a strong second quarter, and maybe even a stronger second half of the year. Investors who are looking to add tech companies, but are reluctant after the strong first half, where technology led all the S&P sectors, up 13.49%, may want to focus on some of these top names.

A new research report from the analysts at Cowen focuses on the stocks in the sector that have flexed their muscle and added capacity in the past to be ready for the current and future increased demand. We screened the research for stocks rated Outperform at the firm.

Akamai Technologies Inc. (NASDAQ: AKAM) has had a solid quarter. While the Cowen team expects them to report earnings above estimates, they do hold open the possibility for light third-quarter guidance. Akamai views its recent Prolexic acquisition as very different but adjacent to its Kona suite and could look at additional network-based security capabilities to address the area between the application and end user; technologies that cover DDoS appliances, app changes, identity management and analytics. Combined with the company’s huge server business, this could make it a top name for investors for the rest of the year and beyond.

The Cowen price target on Akamai Technologies is $68. The Thomson/First Call price target is posted at $65.81. Akamai closed Friday at $59.24 a share.

ALSO READ: 12 Analyst Stocks to Buy Under $10 With Huge Potential Upside

CyrusOne Inc. (NASDAQ: CONE) is organized as a real estate investment trust (REIT). The company’s high-performance Texas data centers give customers the flexibility to leverage the most advanced server technology, accommodating 250 watts per square foot and higher, which in turn has enabled CyrusOne to become the leading technology provider for seismic exploration research and development. A surging oil industry has spurred high growth for the company.

Investors are paid a solid 3.5% distribution, which could contain return of principal with the REIT structure. The Cowen price target for the stock is $32, and the consensus target is at $27.25. Shares closed Friday at $25.73.