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TechStock Radar
E-mail: Rob@techstockprospector.com
Technorati
April 2018
Archives
 
Monday, April 30, 2018, 9:53 AM — by Rob DeFrancesco, TechStock Radar
Barclays Trims Apple Target

Barclays trims its Apple (AAPL, $166.56) price target to $157 from $168 based on concerns about future growth of the iPhone franchise. 


The firm thinks weakening demand for the core product could require the company to allocate more cash to acquisitions. But many shareholders are in the stock for capital returns being the main beneficiary of excess cash, says Barclays.

 
Monday, April 30, 2018, 9:47 AM — by Rob DeFrancesco, TechStock Radar
Morgan Stanley Sets Spotify PT at $190

Morgan Stanley starts Spotify (SPOT, $161.21) at ‘Overweight’ with a price target of $190 based on a forecast of the premium user base growing to about 200 million by the end of 2022 from 70 million today, with revenue growth of 20%+ per year.


The firm points out that there are 1.3 billion smartphone users in Spotify’s 65 existing markets. 


In terms of engagement, Morgan Stanley says time spent on Spotify Premium is nearing Netflix levels.

 
Friday, April 27, 2018, 10:04 AM — by Rob DeFrancesco, TechStock Radar
Stifel Upgrades Facebook

Stifel upgrades Facebook (FB, $175.43) to ‘Buy’ and lifts its price target to $202 from $175, saying the stock is “too cheap to ignore despite its challenges.”


The firm continues to be concerned about regulation and platform fatigue on core Facebook.

 
Friday, April 27, 2018, 9:53 AM — by Rob DeFrancesco, TechStock Radar
Intel Shares Hit New High

Intel (INTC, $54.38) shares this morning hit a new multi-year high at $55.78 after the company last night reported better-than-expected Q1 results, driven by 24% growth in the datacenter unit.


The chipmaker’s new 2018 EPS guidance range of $3.80 to $3.90 is well above the consensus estimate of $3.56.


Credit Suisse raises its Intel price target to $65 from $60, saying strength in the datacenter business is expected to continue through at least the first half of the year.


Citi takes its Intel target up to $64 from $60, citing operating margin strength.

 
Thursday, April 26, 2018, 10:11 AM — by Rob DeFrancesco, TechStock Radar
2 Views on Facebook

Stifel remains cautious about longer-term user engagement and regulatory issues at Facebook (FB, $172.78).


The firm raises its price target to $175 from $168 to reflect “great” Q1 financial numbers and stable near-term usage trends, but maintains its ‘Hold’ rating.


Piper Jaffray says strong Q1 results should ease investor concerns. The firm believes the recent data privacy controversy is fading from relevance for investors. 


The narrative will ultimately return to that of strong top-line growth and an attractive valuation, says Piper. The firm maintains its FB price target of $210.

 
Thursday, April 26, 2018, 9:56 AM — by Rob DeFrancesco, TechStock Radar
Needham: Facebook Remains a Top Pick

Facebook (FB, $171.57) remains a Top Pick for 2018 at Needham, which maintains its price target of $215. 


The firm notes Q1 DAU and MAU growth in North America, along with overall revenue growth acceleration to 49% from 47% in the previous quarter. 


Operating margin gained 500 basis points year over year despite enormous spending on safety and security, says the firm.


Needham says everything the company is doing to make its platform a safer place also makes Facebook a better platform for advertisers.


Facebook shares this morning are up more than 7%.

 
Wednesday, April 25, 2018, 10:07 AM — by Rob DeFrancesco, TechStock Radar
Chart Watch: Atlassian

Atlassian (TEAM, $55.43) shares, down 3% this morning, have fallen below the 50-day moving average of $56.90. 


Traders are now watching short-term support at $54.54, with additional support levels at $51.75 and $50.84.


The uptrend line from the December pivot low runs through the $53 level. The 200-day moving average continues to trend upward from $46.79.

 
Wednesday, April 25, 2018, 9:54 AM — by Rob DeFrancesco, TechStock Radar
Check Point -6% on Soft Guide

Shares of Check Point Software (CHKP, $96.57) this morning are down more than 6% after the provider of cybersecurity solutions issued light Q2 guidance: EPS of $1.25 to $1.35 (the consensus is $1.35) on revenue of $445 million to $475 million (the consensus is $476.2 million).


Check Point stock last October hit a new all-time high of $119.20.

 
Tuesday, April 24, 2018, 10:07 AM — by Rob DeFrancesco, TechStock Radar
Intel Share Pop 4%

Shares of Intel (INTC, $53.30) this morning are up more than 4% after Citi lifts its price target to $60 from $58 based on solid growth in the datacenter unit, which accounted for 43% of 2017 earnings, with operating margin of 44%.


For 2018, the firm expects the datacenter unit to grow 14%, with operating margin expansion to 49.3%. 


Citi says its sensitivity analysis indicates that every 1% growth increase in the datacenter business translates into an EPS bump of three cents.


Citi boosts its 2018 EPS estimate to $3.75, well above the consensus of $3.56.

 
Tuesday, April 24, 2018, 9:56 AM — by Rob DeFrancesco, TechStock Radar
Needham Ups CyberArk Target to $62

Needham raises its CyberArk Software (CYBR, $53.44) price target to $62 from $57, saying the company’s speciality of privileged access management is a bedrock security requirement.


CyberArk is the largest player in the sector, holding a considerable lead, says the firm.


While CyberArk has lagged most of the security names due to some stumbles over the past year, Needham believes improved execution and easy comps can enable the stock to play catch-up.

 
Monday, April 23, 2018, 9:36 AM — by Rob DeFrancesco, TechStock Radar
Paylocity Downgraded at RBC

RBC Capital downgrades Paylocity (PCTY, $54.03) to ‘Sector Perform’ with a price target of $56, citing expectations for a more competitive mid-market payroll space over the next 12 to 18 months.


The firm also says the company’s operating margin expansion might be constrained amid changes in sales productivity. 


Paylocity shares in March hit a new all-time high at $57.16.

 
Monday, April 23, 2018, 9:28 AM — by Rob DeFrancesco, TechStock Radar
Canaccord Upgrades Okta

Canaccord upgrades Okta (OKTA, $41.97) to ‘Buy’ and lifts its price target to $50 from $36, citing the accumulation of favorable fundamental data suggesting a better-than-expected outlook. 


Wall Street analysts on average expect fiscal 2019 (Jan.) revenue growth of 33.5%.


The firm believes competitors are falling further behind Okta, provider of a cloud-based identity management platform.

 
Friday, April 20, 2018, 10:05 AM — by Rob DeFrancesco, TechStock Radar
Chart Watch: Apple

Apple (AAPL, $166.98) shares this morning are down more than 3% and have dipped back below the 50-day moving average of $172.52. 


The pullback is caused by concerns about iPhone demand, particularly in China, where competition has intensified.


Morgan Stanley believes Apple consensus estimates for the June quarter need to be lowered.


The 200-day moving average continues to trend upward from $164.71.

 
Friday, April 20, 2018, 9:57 AM — by Rob DeFrancesco, TechStock Radar
Credit Suisse Remains Bullish on Alphabet

Credit Suisse says Alphabet (GOOGL, $1,081) remains its favorite name in the Internet sector, given the company’s long-term growth potential. 


However, the firm reduces its price target to $1,350 from $1,400 based partially on moderated YouTube TV revenue estimates, reflecting the assumption that this service will be U.S.-only.

 
Thursday, April 19, 2018, 9:55 AM — by Rob DeFrancesco, TechStock Radar
Facebook Q1 Outlook

Given the recent rebound in Facebook (FB, $166.09) shares from the late-March low of $149.02, Deutsche Bank thinks it’s unlikely Q1 results will be a positive catalyst. 


The firm says it would not be surprised to hear a “cautious revenue outlook” from Facebook on the earnings call. 


However, Deutsche Bank maintains its ‘Buy’ rating because it believes Facebook shares remain attractive on a long-term basis.

 
Thursday, April 19, 2018, 9:44 AM — by Rob DeFrancesco, TechStock Radar
Cloud Driving Growth at Microsoft

KeyBanc says Microsoft (MSFT, $96.27) remains one of its favorite cloud-platform plays, maintaining its price target of $110. 


The firm looks for a continuation of robust secular tailwinds in cloud and digital, augmented by a cyclical refresh cycle.


Microsoft’s growth trajectory could inflect higher this year, as the cloud segment tops a $23-billion run rate and margins further expand on operating efficiency at scale, argues KeyBanc.

 
Wednesday, April 18, 2018, 10:32 AM — by Rob DeFrancesco, TechStock Radar
Goldman Still Bullish on Facebook

Goldman Sachs looks for another solid quarter from Facebook (FB, $167.27), saying its checks with advertising partners indicated little to no impact on ad spend following the recent data privacy event.

The firm sees upside potential to consensus 43% ad revenue growth.

The firm does lower its FB price target to $205 from $225 though to reflect the data privacy fallout.

 
Wednesday, April 18, 2018, 10:14 AM — by Rob DeFrancesco, TechStock Radar
A Rich Valuation at Atlassian

Jefferies downgrades Atlassian (TEAM, $61.75) to ‘Hold’ with a price target of $64 based entirely on valuation, while BMO Capital lifts its price target to $65 from $56 ahead of the release of FQ3 (March) results.

BMO Capital believes the company’s price increases should produce higher revenue given the “limited” pushback from customers. However, the firm maintains its ‘Market Perform’ rating based on valuation.

Jefferies thinks TEAM shares are “richly valued.”

 
Tuesday, April 17, 2018, 9:58 AM — by Rob DeFrancesco, TechStock Radar
New Highs in Security

Shares of two security solutions vendors—Proofpoint (PFPT, $124.97) and Varonis Systems (VRNS, $66.45)—are trading at new all-time highs.

Yesterday, Proofpoint hit a new high at $126.29, while Varonis this morning reached a new high at $66.66.

Both Proofpoint and Varonis are holdings in the Tech-Stock Prospector Small-Cap Portfolio.

 
Tuesday, April 17, 2018, 9:49 AM — by Rob DeFrancesco, TechStock Radar
Apple Music Driving Services Growth

Macquarie believes the Music unit at Apple (AAPL, $176.94) is becoming increasingly more important to the company’s services model. It’s likely to be the fastest growing contributor to the division’s revenue, says the firm.

However, Macquarie also notes that the lower-margin profile makes the Music unit less profitable than Apple apps. The firm sees the Music unit contributing less than 4% of services gross profit, vs. 56% for apps.

Macquarie maintains its AAPL price target of $188.

 
Monday, April 16, 2018, 10:28 AM — by Rob DeFrancesco, TechStock Radar
BMO Capital Trims Facebook Target

BMO Capital trims its Facebook (FB, $164.66) price target to $170 from $175, saying the company’s recent decision to no longer allow third-party data providers to offer their targeting directly on the platform may lead to  “minor” usership decline in the short run because of privacy concerns, along with some advertiser ROI degradation.
 
Monday, April 16, 2018, 10:20 AM — by Rob DeFrancesco, TechStock Radar
A Pullback for Dropbox

Shares of Dropbox (DBX, $28.05) this morning are down more than 6% on no specific news, falling below the IPO opening price of $29.

The stock is nearing its post-IPO low of $27.75, which was set on the second day of trading.

Dropbox shares have dipped 19.5% from the post-IPO high of $34.83 reached on April 12.

Dropbox went public in late March at $21.

 
Friday, April 13, 2018, 9:57 AM — by Rob DeFrancesco, TechStock Radar
BTIG Research Bullish on Rapid7

BTIG Research starts Rapid7 (RPD, $27.82) at ‘Buy’ with a price target of $34, saying the company has successfully evolved to an end-to-end provider of security and IT analytics/automation solutions from a niche vulnerability management vendor.

The firm says the transition to a subscription model provides investors with clearer visibility into profitability next year, reducing a major overhang for the stock.

 
Friday, April 13, 2018, 9:38 AM — by Rob DeFrancesco, TechStock Radar
F5 Hits New High on Wm Blair Upgrade

William Blair upgrades F5 Networks (FFIV, $154.69) to ‘Outperform’ after partner checks point to a positive inflection in the company’s business trends, with a “noticeable uptick in needle-moving deals” likely to have driven upside in the March quarter relative to low Wall Street expectations.

The firm believes an improving near-term outlook, combined with management’s “focus on plugging its cloud technology holes,” creates a compelling buying opportunity for the stock at current valuation levels.

F5 shares this morning are up more than 4% and have hit a new all-time high at $156.07.

 
Thursday, April 12, 2018, 10:31 AM — by Rob DeFrancesco, TechStock Radar
Credit Suisse Bullish on Microsoft

Credit Suisse reiterates its Microsoft (MSFT, $93.69) price target of $115 based on recent strength in the commercial PC market, which was largely driven by Windows 10 migrations that were previously postponed during 2017.

The firm says there is a high correlation to enterprises upgrading their productivity suite platform when upgrading their OS environments, or replacing PCs.

 
Thursday, April 12, 2018, 9:26 AM — by Rob DeFrancesco, TechStock Radar
Barclays Downgrades Paycom

Barclays downgrades Paycom (PAYC, $112.27) to ‘Equal Weight’ because it believes the shares are fully valued at current levels.

The firm notes the stock’s strong performance over the past year (+94%), but says upside estimate revisions have been limited.

Even with the downgrade, Barclays raises its PAYC price target to $115 from $97.

 
Wednesday, April 11, 2018, 10:41 AM — by Rob DeFrancesco, TechStock Radar
A New Cycle of IT Growth

Gartner expects global IT spending in 2018 to expand 6.2%, the highest annual growth rate the research firm has forecast since 2007. Gartner says it’s a sign of a new cycle of IT growth.

For 2018, enterprise software spending is forecast to lead the way, with expected growth of 11.1%.

 
Wednesday, April 11, 2018, 9:53 AM — by Rob DeFrancesco, TechStock Radar
DA Davidson Bullish on Imperva

DA Davidson starts Imperva (IMPV, $45) at ‘Buy’ with a price target of $56, saying it sees the company as well positioned for growth, as its CDN/cloud-based capabilities from Incapsula provide a competitive differentiation in the security market along with upside for recurring revenue.
 
Tuesday, April 10, 2018, 9:47 AM — by Rob DeFrancesco, TechStock Radar
Chart Watch: Marvell

After successfully testing the 200-day moving average at $19.78, Marvell Technology (MRVL,$21.14) shares have bounced back a bit, but face short-term resistance at $21.60. The 50-day moving average is trending downward from $22.39. The RSI is on the rebound from 45.5.
 
Tuesday, April 10, 2018, 9:33 AM — by Rob DeFrancesco, TechStock Radar
Needham Bullish on Alteryx

Needham starts Alteryx (AYX, $32.56) at ‘Buy’ with a price target of $39. The company provides an end-to-end self-service data analytics solution that caters to a wide array of end users, regardless of technical proficiency, says the firm.

With Alteryx, users can independently prepare data and deploy models to analyze their line of business without requiring the help of IT for data prep or data scientists for statistical modeling, explains Needham.

Traditional data analysis tools and processes are slow, resource-intensive and may require multiple steps of data prep from IT employees, while Needham believes the self-service tools provided by Alteryx provide a pivotal function in the Big Data software stack, bridging the gap between end users, analytics and the underlying infrastructure.

 
Monday, April 9, 2018, 10:52 AM — by Rob DeFrancesco, TechStock Radar
Piper Jaffray Positive on Cisco

Piper Jaffray says feedback from 43 networking channel partners for its Q1 survey came back “very positive” for Cisco Systems (CSCO, $41.75).

The survey results showed Cisco with 43% of partners above plan and only 3% below plan.

Cisco shares have retreated 9.5% from the 52-week high of $46.16 set on March 13.

 
Monday, April 9, 2018, 10:40 AM — by Rob DeFrancesco, TechStock Radar
Dougherty Lifts Paycom PT to $125

Dougherty & Co. raises its Paycom (PAYC, $108.67) price target to $125 from $100, saying it’s maintaining conviction in the business following a new office opening.

The firm is bullish on Paycom’s strong track record of consistency and expected improvement in fundamentals.

Dougherty admits the valuation is high at 9.3x EV/sales on its FY’19 estimate, but the firm says Paycom continues to build the pipeline for 2019 and beyond with its second office opening of the year. At the current pace, Paycom is on track to re-accelerate new office openings this year, according to Dougherty.

 
Friday, April 6, 2018, 10:35 AM — by Rob DeFrancesco, TechStock Radar
Stephens Upbeat on ForeScout

Stephens starts ForeScout Technologies (FSCT, $32.91) at “Overweight’ with a price target of $37, saying the company’s agentless security technology and agnostic approach should especially resonate as IoT initiatives and cloud environments become the norm.

ForeScout went public last October at $22 a share, with an opening trade at $26.25.

The post-IPO high of $37.79 was reached on March 12.

 
Friday, April 6, 2018, 9:54 AM — by Rob DeFrancesco, TechStock Radar
2 Bullish Views on NetApp

UBS raises its NetApp (NTAP, $63.79) price target to $73 from $71, saying the company has been reinventing itself, and is becoming a leader in cloud storage services.

DA Davidson is even more bullish, boosting its target to $79 from $66. The firm says NetApp is transforming from a storage-array vendor for the enterprise market to a storage-solutions vendor for the enterprise, cloud and hybrid datacenter market, which allows the company to benefit from growing public and private clouds.

 
Thursday, April 5, 2018, 10:45 AM — by Rob DeFrancesco, TechStock Radar
2 Bullish Views on Spotify

Canaccord starts Spotify (SPOT, $149.18) at ‘Buy’ with a price target of $200, saying the global music market has finally found a growth driver in streaming. The firm believes Spotify is well positioned to grow with the shift in music consumption.

Since Spotify is a leader in streaming music, Canaccord thinks the stock warrants a premium valuation.

Stifel initiates Spotify at ‘Buy’ with a price target of $180 because it sees strong growth in the user base and the number of paying subscribers into 2021. By then, the firm forecasts Spotify will have reached approximately 300 million MAUs, including 159 million paying subs.

Stifel believes Spotify can deliver meaningful operating profits and cash flow within its current licensing structure, with additional upside if the company succeeds in demand creation and/or non-music content.

 
Thursday, April 5, 2018, 10:29 AM — by Rob DeFrancesco, TechStock Radar
The Cloud Automation Battle

KeyBanc believes the cloud wars of 2018 are moving to a battle of automation from a battle of features.

The firm says the recent Amazon (AMZN, $1,432) AWS Summit SF revealed the company has an even greater focus on cloud automation.

KeyBanc sees automation as having three major benefits for AWS: driving material cost savings, saving developers time and serving as a competitive differentiator against Microsoft Azure and Google Cloud.

 
Wednesday, April 4, 2018, 10:16 AM — by Rob DeFrancesco, TechStock Radar
IPO Review: Spotify

Shares of Spotify (SPOT, $144.78) this morning are down more than 2%.

After opening for trading yesterday at $165.90, the stock hit an intraday high of $169 and then sold off into the close.

Here are some Wall Street price targets on SPOT:

RBC Capital—$220
MKM Partners—$200
Guggenheim—$175
Atlantic Equities—$160

 
Wednesday, April 4, 2018, 9:55 AM — by Rob DeFrancesco, TechStock Radar
2 Firms Bullish on Redfin

Jefferies thinks Redfin (RDFN, $22.92) shares are at an attractive entry point. The firm continues to believe that Redfin’s vertically integrated business model can be a “long-term industry disruptor in the $85-billion U.S. real estate market.” Jefferies maintains its price target of $28.

DA Davidson starts coverage of Redfin at ‘Buy’ with a price target of $28, saying it’s positive on the company’s use of technology to reduce costs and improve the home transaction experience.

The firm sees Redfin continuing to gain market share thanks to its “early mover advantage and compelling consumer value proposition.”

Davidson estimates that Redfin homebuyers in 2017 saved an average of ~$2,700 in the form of a closing-cost reduction, while the sellers commission of 1% to 1.5% is more attractive than the 2.5% to 3% paid to traditional brokerages.

 
Tuesday, April 3, 2018, 10:31 AM — by Rob DeFrancesco, TechStock Radar
JP Morgan Still Positive on Intel

JP Morgan says reports of Apple (AAPL) potentially using its own chips in the Mac are not new.

The firm estimates Apple’s PC compute platform in 2020 will account for less than 3% of total revenue at Intel (INTC, $48.78).

JP Morgan believes Apple will continue to buy Intel’s Xeon processors to power its current and future datacenters, and continue to use Intel’s cellular modem portfolio to power its iPhone/iPad product lines.

 
Tuesday, April 3, 2018, 9:28 AM — by Rob DeFrancesco, TechStock Radar
BofA/Merrill Adds NVIDIA to U.S. 1 List

BofA/Merrill adds NVIDIA (NVDA, $221.05) to its U.S. 1 List, saying the recent sell-off has created an “enhanced” buying opportunity ahead of 2H’18 product launches. The firm maintains its price target of $300.

NVIDIA is levered to strong growth markets across AI, VR, gaming and autonomous cars, says BofA/Merrill.

 
Monday, April 2, 2018, 9:56 AM — by Rob DeFrancesco, TechStock Radar
KeyBanc Still Positive on Shopify

KeyBanc remains bullish on Shopify (SHOP, $123.81), saying it continues to be a top idea and a key growth name to own. The firm maintains its price target of $170.

Shopify shares have retreated 20% from the all-time high of $154.82 (reached on March 20) on concerns connected to Facebook (FB), but the firm points out that the company continues to drive the majority of GMV and merchant growth organically.

 
Monday, April 2, 2018, 9:49 AM — by Rob DeFrancesco, TechStock Radar
Chart Watch: Amazon

Amazon (AMZN, $1,395) shares continue to come under selling pressure. The stock is now below the 50-day moving average of $1,471.

There is short-term support at $1,365. The February low stands at $1,265.

The 200-day moving average continues to trend upward from $1,158.

   
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