With St. Patrick’s Day, Spring Break and March Madness right around the corner, and just a month left in the first quarter of 2021, many investors are looking past earnings season to next quarter and the rest of 2021 and starting to reset portfolios.
Many investors remain very nervous, especially given the massive fourth-quarter rally since the election that has pushed all the major indexes and the Russell 2000 to all-time highs. Yet, the overall take is one of slow but steady going forward, given the incredible run in the equity markets and the potential for a growing economy due to the COVID-19 vaccine being distributed nationally.
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In a series of new reports, Goldman Sachs raised and reiterated the price targets on stocks of some companies that delivered the goods in a big way during earnings season and still look to have some very solid upside potential. Here we spotlight four Buy-rated technology leaders on which the analysts lifted price targets significantly higher.
It is important to remember that no single analyst report should be used as a sole basis for any buying or selling decision.
Analog Devices
This stock could very well continue to benefit from the increase in information technology and 5G spending. Analog Devices Inc. (NASDAQ: ADI) is a leader in the design, manufacture and marketing of analog, mixed-signal and digital signal-processing integrated circuits for use in industrial, automotive, consumer and communication markets worldwide.
The company offers signal-processing products that convert, condition and process real-world phenomena, such as temperature, pressure, sound, light, speed and motion, into electrical signals.
Analog Devices has among the best end-market exposure, with high communications and aerospace/defense market exposure, in addition to offering investors a powerful 5G content growth story. Plus, acquisitions over the past few years like Linear Technology and Hittite Microwave should provide revenue and additional cost synergies that are still coming.
Investors receive a 1.79% dividend. The Goldman Sachs price target was raised to $186 from $169. The Wall Street consensus price target is $179.11, and Analog Devices stock closed on Tuesday at $154.29 a share.
Applied Materials
This is one of the premier semiconductor capital equipment stocks and a top pick across Wall Street. Applied Materials Inc. (NASDAQ: AMAT) provides manufacturing equipment, services and software to the semiconductor, display and related industries. It operates through three segments.
The Semiconductor Systems segment develops, manufactures and sells various manufacturing equipment that is used to fabricate semiconductor chips or integrated circuits. This segment also offers various technologies, including epitaxy, ion implantation, oxidation/nitridation, rapid thermal processing, physical vapor deposition, chemical vapor deposition, chemical mechanical planarization, electrochemical deposition, atomic layer deposition, etching and selective deposition and removal, as well as metrology and inspection tools.
The Applied Global Services segment provides integrated solutions to optimize equipment and fab performance and productivity comprising spares, upgrades, services, remanufactured earlier generation equipment and factory automation software for semiconductor, display and other products.
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