J.P. Morgan: Here's What To Watch At CES 2015
On Friday, J.P. Morgan previewed this year's CES, which runs from January 6 to 9 in Las Vegas.
Analysts, led by Paul Coster, noted that “the most important overarching theme will be convergence and the degree to which the industry is able to deliver compelling applications and services to the consumer anytime anywhere and with five 9's reliability.”
“Much of this convergence will be evident to the consumer in apps and services that are delivered to the Smart TV, the Smartphone/tablet or to smart wearable devices," they add.
"There will also be a smattering of discrete standalone CE devices and appliances, and some stove-piped solutions, but these generally address niche markets or seem to be subsumed by convergent technologies over the course of time. Mainly investors should be focused on the Smarts,” according to Coster.
In the Smart TV area, they note Dolby Laboratories, Inc. (NYSE: DLB)'s “High Dynamic Range (HDR) technology could be at the threshold of large-scale adoption, catalyzed by the SMPTE adoption of Dolby Vision. This could signal a new an important licensing opportunity for Dolby.”
For smartphones, Coster said Synaptics, Incorporated (NASDAQ: SYNA) “could be a stock that outperforms through CES. We assign a high probability to SYNA's Validity technology being introduced on one or more new smartphones, with the possibility that we will see the first example of area-touch fingerprint recognition.”
For Action Cameras, the firm did not see any competitors able to “match the totality” of the GoPro Inc (NASDAQ: GPRO) platform.
In the 3D Printing space, investors will be focused on “whether the companies have allocated the resources necessary to execute.”
Coster felt that in Peripherals and Accessories, two of Logitech International SA (USA) (NASDAQ: LOGI)'s “growth-categories, mobile speakers and table keyboard/cases, are crowded with competitors and the tablet market is fragmenting rapidly.”
Of the above stocks, Synaptics saw the largest downward move heading into CES and recently traded at $63.54, a decline of 7.70 percent.
GoPro shares rose heading into the event and recently traded at $65.78, up 4.05 percent.
Image credit: LG전자, Wikimedia
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