KeyBanc analyst Brendan Barnicle believes 2016 will be another strong year for leading enterprise software stocks. While the large capital expenditure required to compete in the professional cloud space will likely limit competition to the major players already involved, Barnicle believes there could continue to be outside competition from specialized cloud providers.
“Legacy enterprise vendors should continue to move as quickly as possible to the Professional Cloud,” Barnicle urged. He also sees further consolidation in the SaaS space, both via merger activity and by companies developing a wider range of applications.
KeyBanc named the following four stocks as the best trading ideas for 2016:
- Large Cap: Microsoft Corporation MSFT
- Mid Cap: Autodesk, Inc. ADSK
- Small Cap: HubSpot Inc HUBS
- Small Cap: Zendesk Inc ZEN
In addition, the firm also recommends the following issues:
- Adobe Systems Incorporated ADBE
- salesforce.com, inc. CRM
- Veeva Systems Inc VEEV
- Workday Inc WDAY
- Adobe Systems Incorporated ADBE
- salesforce.com, inc. CRM
- Veeva Systems Inc VEEV
- Workday Inc WDAY
Disclosure: The author holds no position in the stocks mentioned.
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