Deutsche Bank Has 4 Top Tech Stocks to Buy for Telco and Cable Spending

Technology

Published: April 27, 2016 10:05 am

Last Updated: January 13, 2020 10:13 am

If there is one area of technology that always warrants attention, it is the huge demand for latency, cloud storage and computing, video streaming and all of the other broadband dependent networking needs. With 100G data center switching and optical, and a host of other application demanding attention, the top vendors in the space are poised to do well as the web 2.0, telecom and cable companies ramp up spending to keep up with demand.

In a new research report from Deutsche Bank, the focus is on four top companies that are highly levered to the new product cycles and the information technology spending trends at the top providers. All four are rated Buy, and make good sense for long-term tech investors that can see the increased demand and spending.

Akamai Technologies

This company posted very solid first-quarter results this week and the stock has rallied back nicely from multiyear lows hit recently. Akamai Technologies Inc. (NASDAQ: AKAM) is the self-described global leader in content delivery network (CDN) services, Akamai makes the internet fast, reliable and secure for its customers.

The company’s 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. The Deutsche Bank team has made the company one of their top large cap ideas for 2016.

The Deutsche Bank analysts point to huge financial opportunity 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. They also note that the company has about 3500 media customers on its Global Media Delivery Platform, with $350,000 active server pages per customer.

The Deutsche Bank price target for the stock is $75, and the Thomson/First Call consensus price target is $61.10. The shares closed Tuesday at $52.66 apiece.