As third-quarter earnings come to an end, we are starting to see some maneuvering among the top firms on Wall Street to get the right stock ideas in place so investors can take advantage of what has been called for years the “Santa Claus rally.” Typically November and December are among the strongest two months for the market, and analysts top picks could perform outstandingly over the next 50 days.
While watching the FireEye debacle Thursday, we decided to search through our analysts coverage for not only alternative cybersecurity stock picks, but other analysts favorites as well. Cowen’s very well-respected Gregg Moskowitz has three top stocks that are his top picks now. All are rated Outperform at Cowen.
This outstanding tech stock makes the list. Autodesk Inc. (NASDAQ: ADSK) operates as a design software and services company worldwide. Its Platform Solutions and Emerging Business segment offers AutoCAD software, a computer-aided design application for professional design, drafting, detailing and visualization, as well as AutoCAD LT, professional drafting and detailing software. The stock has sold off from highs printed in February and may be offering a stellar entry point.
Autodesk is beginning to benefit from the increased adoption of cloud-based services. Its software packages like Fusion 360, BIM 360 and PLM 360 are also gaining traction. However, in the near term, profitability remains under pressure due to investments in cloud-based infrastructure and marketing initiatives. The company reported so-so earnings in late August, and many feel any increase in construction, especially commercial, can help. The stock was up big Thursday as activist investor Sachem Head Capital Management disclosed a stake and said it wanted to start talks with the developer of design software.
The Cowen price target for the stock is $70. The Thomson/First Call consensus target is lower at $63.25. Shares closed Thursday at $63.49.