Canaccord Genuity tech analysts each released their top picks for 2012:
Semiconductors: Analog Devices (ADI), Integrated Device Technology (IDTI) – Bobby Burleson – “While we remain concerned about near-term softness in PCs and communications and acknowledge the potential for another number cut, we believe the worst cuts are behind us. Heading into 2012, we like names with broad-end market exposure and low PC exposure like Analog Devices and Integrated Device Technology.”
Communications Technology: Apple (AAPL), QUALCOMM (QCOM), Sierra Wireless (SWIR) – T. Michael Walkley – “While we anticipate global handset units will increase by 7% YoY in 2012 to 1.72B units, we anticipate much faster growth trends for the smartphone market. In fact, we are modeling 481M smartphone units in 2011 ramping to 650M units in 2012, or 35% YoY growth.”
New Media & Location Technology: Trimble Navigation (TRMB), Velti (VELT), KIT digital (KITD), Rovi Corporation (ROVI) – Jeff Rath – “We fully expect the US Pay-TV service provider eco-system to undergo an accelerating change as cable providers roll out more robust OTT/Hybrid video offerings in response to growing competitive pressures, and in an attempt to stem ongoing losses of its core video subscribers.”
Enterprise Software: Salesforce.com (CRM), Nuance Communications (NUAN) – Richard Davis – “Software companies – at least firms with next generation architectures – are in great shape. Cloud software accounts for less than 10% of installed code. Barring horrific economic headwinds, the “revolutionaries” on which we focus our coverage are very likely to gain market share at the expense of legacy competitors”
Internet: Google (GOOG), Zillow (Z) – Michael Graham – “We believe the underlying drivers will be growth in online advertising, eCommerce, mobile commerce, and social networking adoption.”
