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FBR Offers Top 2016 Picks For Tech, Media And Telecom Sectors

FBR Offers Top 2016 Picks For Tech, Media And Telecom Sectors

FBR & Co issued a report highlighting their top stocks to own in the technology, media and telecom sector. Daniel Ives and other analysts gave seven picks and explained their rationale of why each one is expected to outperform their competitors in the TMT industry.

1. Cavium Inc (NASDAQ: CAVM)

"Heading into 2016, we believe that CAVM is well positioned to outperform the market given an array of new products including LiquidSecurity, ThunderX...beginning to penetrate the market."

FBR believes Cavium will be one of the fastest growing companies in the semiconductor space.

2. Demandware, Inc. (NYSE: DWRE)

"We believe Demandware will be one of the biggest beneficiaries of retailers and branded manufacturers moving to next generation e-commerce software platforms and the ongoing shift from on-premise deployments to cloud-based ones."

The analysts also believe Demandware will see strong subscription revenue growth and margin expansion in 2016.

3. Facebook Inc (NASDAQ: FB)

"FB is uniquely positioned to grow its share of the high-growth mobile ad market, a function of its product format, consumer stickiness, unique data asset (i.e.,definitive IDs and cross-device login), and a strong track record of innovation."

FBR noted that Facebook may benefit from increased advertising dollars that companies are spending on mobile platforms.

4. Proofpoint Inc (NASDAQ: PFPT)

"In our view, PFPT remains in the very early stages of a massive growth story with SaaS email security front and center as a product catalyst heading into 2016."

FBR sees Proofpoint's strength in their cloud approach as a catalyst going forward as the public shifts to more on-demands product solutions.

5. pdvWireless, Inc. (NASDAQ: PDVW)

"We expect PDVW to outperform based on our expectation for receipt of a notice for proposed rulemaking(NPRM) from the Federal Communications Commission(FCC) for the application to convert its 900 MHz spectrum to broadband from narrowband."

The company's push-to-talk service is currently in seven cities and FBR believes that the company can reach its goal of 20 cities by 2017.

6. SeaWorld Entertainment Inc (NYSE: SEAS)

"We believe that...the new management team will be able to take advantage of attractive comps and improving public sediment to stabilize attendance and revenue trends."

Furthermore, analysts believe that based on negative customer sediment if Seaworld takes its focus off orcas then that could be a positive catalyst going forward.

7. Synchronoss Technologies, Inc. (NASDAQ: SNCR)

"We believe that strong secular trends(e.g. personal cloud adoption, data growth, mobile device proliferation, shorter device upgrade cycles), a good product cycle and ongoing international penetration will add fuel to the rest of the SNCR growth engine."

Latest Ratings for CAVM

Feb 2018Stifel NicolausMaintainsHoldHold
Nov 2017Loop CapitalDowngradesBuyHold
Nov 2017Morgan StanleyDowngradesOverweightEqual-Weight

View More Analyst Ratings for CAVM
View the Latest Analyst Ratings

Posted-In: Daniel Ives FBR & Co.Analyst Color Long Ideas Top Stories Analyst Ratings Tech Trading Ideas Best of Benzinga


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