Oppenheimer Very Bullish on 3 Top Technology Stocks to Buy Now

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One thing is for sure on Wall Street, it takes all kinds of opinions to make the stock market the horse race that it is. At 24/7 Wall St. we cover almost all the major firms, and there is no shortage of conflicting ideas on the direction of the market. Some firms are extremely bearish and worried that the market could be heading for another big leg down. Others are very positive and bullish, and one firm thinks that the S&P 500 is poised to breakout and trade to new highs.

In a new research report, the Oppenheimer team sees numerous positives for the market, and they cite everything from broadening internal market breadth to contrarian skepticism and improving commodity prices as a basis for their very bullish stance. They also zero in on 12 top stocks to buy now that are either jumping higher from technical support levels or breaking above resistance.

We screened the list for the technology companies that made the technical grade and have a rating of Outperform at Oppenheimer.

Broadcom

This is the combined entity that was formerly known as Avago and Broadcom. Broadcom Ltd. (NASDAQ: AVGO) is a leading designer, developer and global supplier of a broad range of analog and digital semiconductor connectivity solutions. Its extensive product portfolio serves four primary end markets: wired infrastructure, wireless communications, enterprise storage and industrial and other.

Applications for the company’s products in these end markets include data center networking, home connectivity, broadband access, telecommunications equipment, smartphones and base stations, data center servers and storage, factory automation, power generation and alternative energy systems, and displays.

The company produces radio frequency (RF) front-end for LTE-enabled Apple products. Wall Street estimates that the company does 15% of its total business with Apple. Additional estimates are that the company has between a 13% and 17% revenue exposure to Apple in the wireless communications segment, which was guided up 10% or more quarter over quarter for the third quarter. Customer diversity and content for Samsung could be more than enough to offset slower Apple business.

Top Wall Street analysts like the leadership in the mobile, data center and broadband markets, and especially in the RF arena. Many on Wall Street see a cyclical rebound in industrial and communications demand.

Broadcom investors are paid a 1.3% dividend. The Oppenheimer price target for the stock is $170, and Thomson/First Call consensus price target is set at $178.25. Shares closed Tuesday at $154.36.