Technology
Deutsche Bank Has 5 Top Theme Technology Stock Picks to Buy for 2016
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While 2015 has been generally a frustrating year for investors, with all the indexes down except the Nasdaq, one good aspect is that the sideways-to-down trading has made stock prices more palatable at current levels. One area that held its own is information technology, networking and wireless. A new Deutsche Bank report sizes up this group and presents some top ideas for next year.
Deutsche Bank is focused on what it refers to as the “major IT spending dislocations” in 2016. The firm sees significant spending shifts that they feel will benefit some companies more than others. They analysts cite five top-pick stocks they feel will work the best in 2016.
Akamai Technologies
This stock has been hit hard since October and may be offering investors a very good entry point. Akamai Technologies Inc. (NASDAQ: AKAM) is the self-described global leader in content delivery network (CDN) services, making the Internet fast, reliable and secure for its customers. Its advanced Web performance, mobile performance, cloud security and media delivery solutions are revolutionizing how businesses optimize consumer, enterprise and entertainment experiences for any device, anywhere.
Deutsche Bank has made the stock its top large cap idea for 2016. The analysts point to huge financial opportunity in what they term over-the-top linear and on-demand TV as the media companies generate the next 10% of Internet video traffic. They point out this is above and beyond the 37% of Internet traffic volumes generated by Netflix. Also, trading at just seven times 2017 estimated EBITDA, the stock is dirt cheap.
The Deutsche Bank price target for the stock is $80, and the Thomson/First Call consensus target is $70.53. The shares closed Thursday at $53.70.
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