Credit Suisse believes that technology stocks are only moderately expensive
Global software industry should rise at a CAGR of over 10% until 2025, with SAP well-positioned to benefit
J.P. Morgan analysts upgraded the IFX stock to “Buy” in June
Credit Suisse, the Swiss investment banking company, believes that technology stocks remain the best investing option but has advised customers to invest in tech with greater caution.
Fundamental analysis: Moderately expensive sector
The bank is concerned with the ‘dot-com-era bubble’ taking shape in the market due to increased congestion in leading tech stocks. A downfall of these mega-cap stocks in early September eased concerns about overvaluation, but high share prices prompted Credit Suisse to conduct analysis whether its clients can still trust the sector or stay away.
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The Swiss bank analyzed several key metrics to ascertain the scope of indulgence in technology stocks. Tech investment as a share of gross domestic product is close to its average, as well as the share of non-residential investment.
The analysis also showed that the capital-expenditures-to-sales ratio in tech is nowhere near extended levels and is probably boosted by expected demand for 5G devices and autonomous-driving upgrades.
Credit Suisse pointed out that technology stocks are only moderately expensive when it comes to free-cash-flow yield compared with the rest of the market. Demand for technology produced similar indications, as its sales are matching their historical trend, compared to the dot-com bubble’s 12% overreach.
The bank also said speculation is higher in some areas of the sector but not near its extreme levels. Credit Suisse said “excess in tech is high” but not like it has been in the late 1990s.
However, the bank advised clients to invest more cautiously. Credit Suisse analysts cut the overweight rating for tech stocks, due to increased market congestion and elevated regulatory risks in case Biden wins the presidential election.
Furthermore, the emergence of a proven Covid-19 vaccine could prompt a “short-term reversal in some of the online trends” that boosted tech during the pandemic, the bank added.
2 German tech stock to buy in November
SAP SE (ETR: SAP) is the largest software company in Europe and one of the world’s largest listed software companies. The global software industry is expected to rise at a CAGR of over 10% until 2025.
SAP stock price is 10.7% up year-to-end with a fresh all-time high created in the last week of September. A correction has taken place since this move higher to push SAP share price to a buy zone near the 130.00 mark. Target on the upside for the buyers is 158.00, signalling a potential upside of around 20%.
Infineon Technologies AG (ETR: IFX), one of the ten largest semiconductor manufacturers in the world. It’s exposure to the emerging 5G industry is one of the key reasons behind the company’s popularity among the investors community.
Analysts at Barclays rate IFX as “Equal-weight”, while J.P. Morgan analysts upgraded the stock to “Buy” in June. Infineon printed a new all-time high this week to reflect a strong performance on the business front. Any pullback to 25.70 should be seen as an opportunity to get on the long side to target 30.00.
Credit Suisse analysts said the tech sector remains the best investing choice, however, the bank advised customers to take some money off the table. SAP and Infineon are two German tech stocks that are likely to continue moving forward in the last quarter of the year.
Linedata (Paris:LIN) (LIN:FP), a global provider of credit and asset management technology, data and services, unveiled its latest innovation, Asset Management Platform – Linedata AMP. The dynamic suite of tools provides asset managers with an always-on approach to software, data and services by leveraging cloud technology to offer continuous integration and drive adaptability.
The rapidly changing nature of the asset management industry has increased the pressures to adapt to digital transformation, overcome regulatory hurdles, streamline business costs and meet the needs of a globalized customer base. Linedata created AMP with a modular design to help the industry solve these challenges and ensure asset managers can constantly and quickly serve their customers.
"Linedata AMP was developed with more than 20 years of business intelligence expertise in mind. The platform enables clients to embrace market volatility and remote work demands with a trusted partner, who can simultaneously help them reimagine their operations and drive new business growth,” said Gary Brackenridge, Linedata’s Global Head of Asset Management. "By adopting AMP into business models, clients can utilize quick-to-market features, greater scalability, and cloud-enabled technology, while continuing to benefit from Linedata’s robust, interoperable technology and expert teams.”
Core features within Linedata AMP to improve the client experience include:
Continuous Integration / Continuous Delivery (CI/CD) Platform – CI/CD makes Linedata AMP an ideal solution to boost innovation and expand into new markets. The seamless migration and simplified approach to upgrades makes incorporating new features possible at any time, with limited effort.
Cloud-Based System – With AMP, Linedata is able to deploy a nimble, forward-compatible offering delivering a hassle-free user experience (UX) and user interface (UI), enhancing efficiency while increasing scalability – all in the public cloud, in addition to existing hybrid and private cloud options as well. Essential for an industry with work-from-home mandates and the need for enhanced security during remote working.
Linedata Analytics Service (AI/ML) – Another key AMP offering is Linedata Analytics Service, which incorporates Artificial Intelligence (AI) and Machine Learning (ML) to deliver actionable insights from client and third-party data that asset managers can leverage to improve day-to-day processes, competitiveness in the marketplace and fundamentally lower cost curves.
Linedata Data Management Service – Additionally, AMP includes Linedata Data Management Service, which lowers total cost of ownership for this critical function with comprehensive pricing and reference data sets directly integrated into Linedata software.
To learn more about Linedata’s Asset Management Platform – Linedata AMP, visit www.linedata.com/amp.
With 20 years’ experience and 700+ clients in 50 countries, Linedata’s 1300 employees in 20 offices provide global humanized technology solutions and services for the asset management and credit industries that help its clients to evolve and to operate at the highest levels.
Headquartered in France, Linedata achieved revenues of EUR 169.7 million in 2019 and is listed on Euronext Paris compartment B FR0004156297-LIN – Reuters LDSV.PA – Bloomberg LIN:FP.
View source version on businesswire.com: https://www.businesswire.com/news/home/20201018005023/en/
(RTTNews) - The Thai stock market has moved lower in three straight sessions, sliding more than 40 points or 3.3 percent along the way. The Stock Exchange of Thailand now sits just beneath the 1,235-point plateau and it's likely to move lower again Monday due to the ongoing pro-democracy protests.
The global forecast for Asian markets is murky, clouded by uncertainty regarding stimulus in the United States. The European markets were up and the U.S. bourses were mixed and the Asian markets figure to split the difference.
The SET finished modestly lower on Friday following losses from the energy producers and a mixed picture from the financial shares.
For the day, the index shed 9.28 points or 0.75 percent to finish at 1,233.68 after trading between 1,226.95 and 1,247.89. Volume was 18.804 billion shares worth 44.575 billion baht. There were 1,088 decliners and 405 gainers, with 438 stocks finishing unchanged.
Among the actives, Advanced Info skidded 1.14 percent, while Thailand Airport added 0.45 percent, Asset World plummeted 6.02 percent, Bangkok Dusit Medical dropped 1.08 percent, Bangkok Expressway gained 0.59 percent, CP All Public surrendered 1.27 percent, Charoen Pokphand Foods advanced 0.96 percent, Kasikornbank rose 0.34 percent, Krung Thai Bank collected 0.57 percent, PTT shed 0.76 percent, PTT Exploration and Production fell 0.31 percent, PTT Global Chemical retreated 1.20 percent, Siam Commercial Bank declined 1.55 percent, Siam Concrete tanked 2.05 percent and TMB Bank, Bangkok Bank and BTS Group were unchanged.
The lead from Wall Street is uninspired after stocks opened higher on Friday but faded as the day progressed, eventually ending mixed.
The Dow added 112.11 points or 0.39 percent to finish at 28,606.31, while the NASDAQ sank 42.34 points or 0.36 percent to end at 11,671.56 and the S&P 500 rose 0.47 points or 0.01 percent to close at 3,483.81. For the week, the Dow rose 0.1 percent, the NASDAQ gained 0.8 percent and the S&P was up 0.2 percent.
The late-day pullback on Wall Street reflected lingering uncertainty about a new stimulus bill, with the slump also being attributed to the expiration of equity options.
The rally in early trading came as better than expected retail sales data tempered concerns the economic recovery may be stalling. Also, the University of Michigan reported a bigger than expected improvement in consumer sentiment in October.
Buying interest was also generated after Pfizer (PFE) Chairman and CEO Albert Bourla said the drug giant will apply for emergency use of the Covid-19 vaccine it is developing with BioNTech (BNTX) soon after the safety milestone is achieved in the third week of November.
Crude oil prices ended marginally lower on Friday as worries about the demand outlook amid the continued surge in coronavirus cases weighed on the commodity. West Texas Intermediate Crude oil futures for November ended down $0.08 or 0.2 percent at $40.88 a barrel.