Deutsche Bank's Top Technology Stocks to Own for the Rest of 2014
With technology the clear sector leader this year in the S&P 500, many investors may be wondering if the winning string has played out. Second-quarter earnings were in-line to better than expected for most companies, with few huge blow-outs or misses. What this means going forward, is that with exciting new products coming this fall, and an expected continuation of capital expenditure growth, the top tech names may have more room to run.
A new report from Deutsche Bank cites mixed demand in the overall tech picture, but solid improvement in areas like personal computers (PCs), which have struggled for the past couple of years. While server and storage demand was weaker, the Deutsche Bank team is convinced that overall end demand is improving.
Here are the five top picks in technology from the Deutsche Bank analyst. The all carry a rating of Buy.
3D Systems Corp. (NYSE: DDD) has been an incredibly volatile stock and now may be a time for investors to revisit. Its 3D printers convert data input from computer-aided-design-generated software format or 3D scanning and sculpting devices to printed parts. 3D printing was a super-hot segment last year, and the top stocks were absolutely eviscerated in the early spring sell-off. Hot and fast money loves to be long and short this top stock, so entry points are critical.
The analysts at Deutsche Bank are convinced that 3D Systems is a winner and have a large $80 price target for the stock. The Thomson/First Call consensus target is posted at $59.68. 3D systems closed Monday at $47.27 a share.