Technology

Raymond James Has 5 Analyst Favorite Technology Picks With Massive Implied Upside

Lumentum

This is a top company that should continue to benefit big-time from Microsoft’s Azure division. Lumentum Holdings Inc. (NASDAQ: LITE) is a provider of optical and photonic products for a range of end-market applications, including data communications, telecommunications, networking and commercial lasers for manufacturing, inspection and life-science applications.

The company operates in two segments. Its OpComms products include a range of components, modules and subsystems to support and maintain customers in its two primary markets: telecom and datacom. Lumentum’s Commercial Lasers products serve customers in markets and applications, such as manufacturing, biotechnology, graphics and imaging, remote sensing, and precision machining, such as drilling in printed circuit boards, wafer singulation and solar cell scribing.

The $70 Raymond James price target compares with the $71.20 consensus price objective, as well as the most recent closing share price of $57.20.

Rapid 7

Investors may not be familiar with this company either, but its stock has huge upside potential to the analysts’ target prices. Rapid 7 Inc. (NASDAQ: RPD) engages in the provision of cybersecurity analytics and automation services. Its product includes insight platform, which offers InsightVM, InsightIDR, InsightAppSec and InsightConnect.

Rapid 7 is advancing security with visibility, analytics and automation delivered through its Insight cloud. The company’s solutions simplify the complex, allowing security teams to work more effectively with IT and development to reduce vulnerabilities, monitor for malicious behavior, investigate and shut down attacks and automate routine tasks. Some 8,400 customers rely on Rapid7 technology, services and research to improve security outcomes and securely advance their organizations.

Raymond James has set its price target at a whopping $76. The posted consensus target is $71.20, and the last trade on Wednesday came in at $50.59.

Salesforce

This top company has reported solid fiscal 2019 results so far as billings have drastically improved, and this past quarter was no exception. Salesforce.com Inc. (NYSE: CRM) provides enterprise cloud computing solutions, with a focus on customer relationship management to various businesses and industries worldwide. It also has one of the most valuable brands in the world.

It offers enterprise cloud computing applications and platform services, including Sales Cloud that enables companies to store data, monitor leads and progress, forecast opportunities, gain insights through relationship intelligence and collaborate around sales on desktop and mobile devices.

The company also provides Service Cloud, which enables companies to deliver personalized customer service and support, as well as connect their service agents with customers on various devices, and Marketing Cloud, which enables companies to plan, personalize and optimize customer interactions.

In addition, Salesforce announced earlier this month that it has completed its acquisition of Tableau Software, bringing together the world’s number one customer relationship management company with the world’s number one analytics platform.

The Raymond James price target for the shares is a strong $200. The consensus target price is lower at $186.97, and the stock closed most recently at $158.28 per share.

These five Raymond James analyst favorite technology stock picks have substantial upside potential to the price targets. While they are more suited for growth accounts with higher risk tolerance, they all would make good portfolio additions at current price levels.