ARRIS And Kornit Among Emerging Tech Picks From Barclays

Barclays’ Joseph Wolf named ARRIS International plc ARRS and Kornit Digital Ltd KRNT among the firm's emerging tech picks.

ARRIS International

Wolf mentioned ARRIS International was the top pick, with the highest upside potential.

“The stock is down since reporting strong 1Q16 earnings, which we attribute to choppy customer capex spending plans and headline risk associated with FCC set-top box proposals,” the analyst stated.

Wolf believes the company’s annual guidance reflects the near-term environment and retained his bullish stance on end-market demand.

The analyst further believes the current share price offers an attractive entry point into the stock, which was expected to see improving industry dynamics in both its businesses in 2H, with acceleration in 2017.

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“Expectations are muted heading into the quarter, and meeting expectations and maintaining annual guidance is likely enough for a positive reaction from investors,” Wolf said.

Kornit Digital

For Kornit Digital, Wolf believes the estimates are achievable, while the stock could be positive impacted if management were to address issues associated with new product wins in the R2R market, ability to print on dyed polyester, as well as greater details regarding the large customer that was expected to begin impacting sales in 2H16.

“The DTG market is large enough to sustain near-term growth and we are looking for milestones from the recent move to direct distribution with the acquisition of SPSI,” Wolf added.

Posted In: BarclaysJoseph WolfAnalyst ColorLong IdeasAnalyst RatingsTechTrading Ideas

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