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TechStock Radar
E-mail: Rob@techstockprospector.com
Technorati
July 2017
Archives
 
Friday, July 21, 2017, 10:09 AM — by Rob DeFrancesco, TechStock Radar
Needham Starts Proofpoint at 'Buy'

Needham starts Proofpoint (PFPT, $91.70) at ‘Buy’ with a price target of $115, calling the company a platform play in security. Proofpoint offers a pure SaaS model, 30%+ top-line growth, expanding margins and strong cash flow, says the firm.


Needham thinks its a mischaracterization to view Proofpoint simply as an email security company. 


Proofpoint helps enterprises better protect people, data and brands across email, social media and mobile devices. The company’s platform extracts and correlates intelligence across various attack vectors, learning from each new attack to stay ahead of evolving threats, says Needham.

 
Friday, July 21, 2017, 9:55 AM — by Rob DeFrancesco, TechStock Radar
Strong FQ4 Results from Microsoft

Microsoft (MSFT, $73.70) last night delivered a strong fiscal Q4 (June) earnings report, with Office 365 Commercial revenue advancing 43%. Azure revenue growth accelerated to 97% from 93% in the previous quarter. Commercial bookings were up 30%.


In the Commercial Cloud, the annualized revenue run rate now stands at $18.9 billion, up from $12.1 billion at the end of FY’16.


Deutsche Bank raises its Microsoft price target to $85, while Raymond James goes to $84. UBS ups its target to $82 from $73.

 
Friday, July 21, 2017, 9:45 AM — by Rob DeFrancesco, TechStock Radar
July Issue of TSP Available on Kindle

Download the new issue of Tech-Stock Prospector to your Kindle or Kindle reading app for iOS (iPad & iPhone) and Android. 


Order the latest issue of TSP here.



Here are some of the topics covered in the July 2017 issue:


*More grocery shopping is happening online

*New technologies set to disrupt grocery retailers

*PayPal powers mobile payments

*Workday has some new growth drivers

*Paycom continues to attract larger customers

*Cornerstone battles to stays competitive in HCM

*Veeva Systems sees success with Vault

*Small-Cap Watch: Alteryx builds its customer base

*Salesforce debuts Einstein Analytics

*The bullish case for ServiceNow


*Palo Alto Networks is getting back on track

*Cisco looks to win back market share in security

*Security Watch: Proofpoint remains well positioned

*HubSpot eyes market share gains

*YouTube helps power growth at Alphabet

*Trend Watch: Convergence in the datacenter

*A valuation reset for Nutanix shares

*How data integration fuels analytics

*Talend expands its partner network

*Deal Report: Monolithic Power Systems

 
Thursday, July 20, 2017, 10:10 AM — by Rob DeFrancesco, TechStock Radar
Chart Watch: Twilio

Shares of Twilio (TWLO, $31.86) continue to rebound (the RSI is up to 73.9) and have pushed above the downwardly sloping 200-day moving average of $31.39.


The stock is attempting to fill the large gap on the price chart from early May, which extends up to $32.75.


The 50-day moving average is now trending upward from $26.93.

 
Thursday, July 20, 2017, 10:02 AM — by Rob DeFrancesco, TechStock Radar
Morgan Stanley Bullish on Alphabet

Morgan Stanley reiterates its Alphabet (GOOGL, $997) price target of $1,050, saying it believes the company’s monetization and innovation initiatives will continue to drive faster core Google Sites growth, with OpEx discipline leading to higher earnings power.

 
Wednesday, July 19, 2017, 10:09 AM — by Rob DeFrancesco, TechStock Radar
More Downside for Snap Shares?

Snap (SNAP, $15) shares this morning are rebounding a bit after yesterday’s dip to a new post-IPO low of $14.63.


MoffettNathanson believes Snap shares still have more room to fall based on disappointing growth metrics and the big IPO lock-up expiration coming on July 30. The firm maintains its ‘Sell’ rating and $11 price target.

 
Wednesday, July 19, 2017, 10:02 AM — by Rob DeFrancesco, TechStock Radar
Cowen Modestly Positive on Apple

Cowen continues to see risk to the September quarter at Apple (AAPL, $150.56) based on supply constraints surrounding the upcoming iPhone, but the firm says there could be modest upside to the June quarter. 


Cowen remains upbeat on Apple’s capital return program, and expects the Services revenue growth narrative to gain momentum. The firm maintains its price target of $160. 

 
Wednesday, July 19, 2017, 9:54 AM — by Rob DeFrancesco, TechStock Radar
SunTrust Downgrades PayPal

SunTrust downgrades PayPal (PYPL, $57.80) to ‘Hold’ with a price target of $60 based on valuation, long-term competitive risks and uncertain Venmo monetization efforts.


Yesterday, the stock hit a new all-time high at $58.96. So far this year, PayPal shares have advanced 46% from the 2016 closing price of $39.47.

 
Wednesday, July 19, 2017, 9:48 AM — by Rob DeFrancesco, TechStock Radar
Needham Hikes Facebook PT to $185

Needham raises its Facebook (FB, $163.62) price target to $185 from $165 based on continued strong user growth and recent checks showing more robust ad revenue growth than previously expected, owing to more video ads. The firm also cites a faster Instagram revenue ramp and reduced competition from Snap (SNAP).


Needham believes Facebook is becoming the de facto mobile choice for brands and direct-response advertisers.

 
Tuesday, July 18, 2017, 10:05 AM — by Rob DeFrancesco, TechStock Radar
Azure Helps Drive Growth at Microsoft

Credit Suisse remains bullish on Microsoft (MSFT, $73.19), calling out a potential positive inflection point on Azure. The firm says its recent enterprise software survey suggests healthy demand for Azure. Credit Suisse boosts its price target to $84 from $80.


Goldman Sachs ups its Microsoft target to $88 from $78, saying it sees potential upside to fiscal Q4 (June) earnings and revenue, driven by strength in cloud offerings. 


Goldman has something in common with Credit Suisse: its field checks on Azure have been very strong, indicating a potential to reaccelerate. 

 
Tuesday, July 18, 2017, 9:55 AM — by Rob DeFrancesco, TechStock Radar
PayPal Price Targets Boosted

After hitting a new all-time high of $58.63 last week, PayPal (PYPL, $57.79) stock is consolidating recent gains, holding well above the 50-day moving average of $52.68.


Barclays raises its PayPal price target to $63 from $52 because it believes the company is well-positioned for a beat-and-raise quarter based on stronger pricing.


Susquehanna takes its target up to $67 from $55, citing broad acceptance by merchants and the potential for even higher acceptance rates.


For more on PayPal, see TechStock Radar—July 10, 2017.

 
Monday, July 17, 2017, 9:48 AM — by Rob DeFrancesco, TechStock Radar
UBS Boosts Amazon Target to $1,200

UBS raises its Amazon (AMZN, $1,013) price target by $100 to $1,200 to reflect longer-term opportunities—including Prime membership, which has increased the shopping velocity among members. The firm also cites ad opportunities, cloud-computing penetration and the third-party mix in Amazon’s core retail operations.

 
Monday, July 17, 2017, 9:42 AM — by Rob DeFrancesco, TechStock Radar
BofA/Merrill Bullish on Tableau

BofA/Merrill adds Tableau Software (DATA, $64.03) to the ‘Top Picks’ list and reiterates its price target of $76, saying recent partner discussions indicate execution in Q2 continued to show improvement.


The firm’s key bullish points: 


1-Enterprises continue to expand deployments

2-Tableau Server sales are strong

3-Competition from Microsoft Power BI has stabilized 

 
Friday, July 14, 2017, 10:34 AM — by Rob DeFrancesco, TechStock Radar
Cowen Downgrades Snap

Cowen downgrades Snap (SNAP, $15.45) to ‘Market Perform’ and lowers its price target to $17 from $21 based on reduced ad revenue growth going forward to reflect a more competitive environment.


While the firm still thinks Snap’s longer-term opportunity remains significant, it does not believe the contribution from the company’s new ad monetization products (like Direct Response and Self Serve) will be meaningful in the near term.

 
Friday, July 14, 2017, 10:25 AM — by Rob DeFrancesco, TechStock Radar
Goldman: Nutanix is a 'Conviction Buy'

Goldman Sachs adds Nutanix (NTNX, $22.01) to its ‘Conviction Buy List’ with a price target of $31, calling out the company as a strong tech infrastructure play. The firm’s bullish points on Nutanix: double-digit growth, high gross margin and significant operating leverage.


Given the overall growth in hyperconverged appliances and the company’s position in enabling private cloud adoption, Goldman views Nutanix as an M&A candidate.


Nutanix shares this morning are up more than 8%.


For more on Nutanix, see the July 2017 issue of Tech-Stock Prospector (TSP #185).

 
Thursday, July 13, 2017, 10:20 AM — by Rob DeFrancesco, TechStock Radar
Stifel Upgrades Snap to 'Buy'

Stifel upgrades Snap (SNAP, $15.80) to ‘Buy’ with a price target of $22. The firm believes the shares offer a “compelling risk/reward opportunity” following the recent sell-off. 


Stifel says near-term risks to revenue-generating daily active users may be overstated, pointing to “healthy” app download trends in key ad markets. 

 
Thursday, July 13, 2017, 10:14 AM — by Rob DeFrancesco, TechStock Radar
Piper Jaffray Cuts Snap Target

Piper Jaffray lowers its Snap (SNAP, $15.82) price target to $16.50 from $20, saying a recent survey it conducted indicated increased traction for Instagram, representing a risk to monetization. 


Usage on Instagram is increasingly pivoting to encompass Snapchat’s core use cases of direct ephemeral photo/video messaging and stories, says the firm.

 
Wednesday, July 12, 2017, 11:11 AM — by Rob DeFrancesco, TechStock Radar
A New High for New Relic

Shares of New Relic (NEWR, $47.40) this morning hit a new all-time high at $47.71.


New Relic is a Tech-Stock Prospector Small Cap Portfolio holding, added in May 2016 at $26.29.

 
Wednesday, July 12, 2017, 10:41 AM — by Rob DeFrancesco, TechStock Radar
Barclays Maintains Snap PT of $18

Barclays advises waiting until the Snap (SNAP, $15.35) IPO lock-up expiration volume subsides (probably sometime in the middle of Q3) before buying the stock. For now, the firm maintains an ‘Equal Weight’ rating and a price target of $18.


Barclays says Snap shares can go higher once investors switch their focus back to the company’s product innovation and “enormous” advertising opportunity.


Snap shares this morning hit a new post-IPO low of $15.25.

 
Tuesday, July 11, 2017, 10:34 AM — by Rob DeFrancesco, TechStock Radar
JP Morgan Remains Bullish on Netflix

JP Morgan likes Netflix (NFLX, $154.84) shares headed into the July 17 earnings report, saying the company offers a “cleaner story” in 2017, with pricing changes in the past and revenue accretion kicking in from higher ASPs. The firm sees potential for Q2 subscriber upside. JP Morgan maintains its price target of $178.

 
Tuesday, July 11, 2017, 10:29 AM — by Rob DeFrancesco, TechStock Radar
Morgan Stanley Downgrades Snap

Snap (SNAP, $15.97) shares this morning are off 6% after a Morgan Stanley downgrade to ‘Equal Weight.’ The price target was slashed to $16 from $28. 


The firm now looks for Snap’s ad revenue growth to be materially slower than previously expected given the struggles to innovate and improve the ad product. In addition, Snap faces rising competition from Instagram.


Morgan Stanley reduces its 2017 and 2018 Snap revenue forecasts by 7% and 13%, respectively.

 
Monday, July 10, 2017, 10:40 AM — by Rob DeFrancesco, TechStock Radar
Bernstein Upgrades PayPal

Bernstein upgrades PayPal (PYPL, $54.99) to ‘Outperform’ with a price target of $61, saying the company is “at the beginning, not the end, of multi-year outperformance” supported by high-teens earnings growth. 


The firm likes that PayPal has improved its checkout button and successfully built partnerships. Bernstein sees PayPal as more of an “ecosystem collaborator” than a disruptor.

 
Monday, July 10, 2017, 10:34 AM — by Rob DeFrancesco, TechStock Radar
MKM Maintains Netflix Target of $195

MKM Partners thinks investors are still underestimating the size of the Netflix (NFLX, $151.54) addressable market. The firm maintains its price target of $195. MKM expects Q2 results to be slightly better than seasonal, while Q3 guidance could beat expectations, driven by conservative subscriber estimates.

 
Friday, July 7, 2017, 10:23 AM — by Rob DeFrancesco, TechStock Radar
UBS Ups FireEye Target

UBS lifts its FireEye (FEYE, $15.24) price target to $16 from $13, saying the tone in the partner channel is more stable than expected. The firm says that makes FireEye’s 2H’17 targets look more achievable. 

 
Friday, July 7, 2017, 10:17 AM — by Rob DeFrancesco, TechStock Radar
Stifel Positive on Microsoft

Stifel says the Microsoft (MSFT, $69.20) sales reorganization (as many as 3,000 jobs could be eliminated) will help the company more efficiently promote its more effective products and give it the flexibility to continue to invest in growth areas. The firm sees the move as a gross margin booster.

 
Thursday, July 6, 2017, 10:57 AM — by Rob DeFrancesco, TechStock Radar
BofA/Merrill Remains Upbeat on NVIDIA

BofA/Merrill says gaming strength at NVIDIA (NVDA, $143.03) is under-appreciated, citing 2H seasonal uplift in the secularly growing market, new title launches and the overall rise of eSports. Nintendo Switch demand remains an incremental growth driver, according to the firm. BofA/Merrill maintains its price target of $185.

 
Thursday, July 6, 2017, 10:32 AM — by Rob DeFrancesco, TechStock Radar
Chart Watch: Apple

Apple (AAPL, $142.63) shares this morning have dropped to the lower end of the recent trading range. There is short-term support at $142.28 and $142.20. After that, there’s support at the $140 level from April. The 50-day moving average is trading sideways from $149.12.

 
Wednesday, July 5, 2017, 10:34 AM — by Rob DeFrancesco, TechStock Radar
Chart Watch: Okta

Okta (OKTA, $22.07) shares this morning hit a new post-IPO low of $22.05. The company, a provider of a cloud-based identity management platform, went public in early April at $17 a share, with an opening price of $23.75. The post-IPO high of $28.25 was reached on June 9.

 
Wednesday, July 5, 2017, 10:18 AM — by Rob DeFrancesco, TechStock Radar
Citi Remains Bullish on Apple

Maintaining its Apple (AAPL, $143) price target of $160, Citi says any delay in the new iPhone 8 “may create a particularly attractive entry point” over the next few months. 


The firm believes the next handset could experience delays as it ramps to high volume production in order to meet strong demand.

 
Monday, July 3, 2017, 12:56 PM — by Rob DeFrancesco, TechStock Radar
Nasdaq Shows Relative Weakness

After closing two sessions in a row below its 50-day moving average, the Nasdaq Composite today is down 0.35%, lagging the overall market. The RSI has fallen to 45.6.


Traders have been taking profits in some previous winners, including NVIDIA (NVDA, $139.40), which is off 3.5% and approaching its 50-day moving average at $134.82.

   
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