Analysts’ Opinions Are Mixed on These Technology Stocks: Cerner Corp. (NASDAQ: CERN), Maxwell Technologies (NASDAQ: MXWL) and Endurance International (NASDAQ: EIGI)By Austin Angelo
Analysts have been eager to weigh in on the Technology sector with new ratings on Cerner Corp. (NASDAQ: CERN), Maxwell Technologies (NASDAQ: MXWL) and Endurance International (NASDAQ: EIGI).
Cerner Corp. (NASDAQ: CERN)
“We maintain our BUY rating and lower our PT to $63 (from $68) as we recommend staying invested in CERN given expectations for continued market share gains. Despite this, shares are likely to move lower following weaker than expected 3Q’16 results and 4Q’16 guide. Shares could remain in the doldrums given a softer purchasing environment (that lacks regulatory mandated buying activity) and an overall negative healthcare sentiment exacerbated by election uncertainty. However, given a record pipeline, longer term we believe that there is value inherent in this market leader. Key positive: Preliminary 2017 guidance contemplates flat y/y bookings; however, management stated that it “fully” expects to realize growth and potentially previous annual growth levels given the robust pipeline. While it is difficult to gauge the level of conservatism, accelerating bookings growth would be a catalyst to drive shares higher.”
According to TipRanks.com, Close is a 3-star analyst with an average return of 0.5% and a 37.8% success rate. Close covers the Technology sector, focusing on stocks such as Castlight Health, Evolent Health, and Athenahealth.
Currently, the analyst consensus on Cerner Corp. is Moderate Buy and the average price target is $70.25, representing a 32.2% upside.
In a report released today, Oppenheimer also reiterated a Buy rating on the stock with a $66 price target.
Maxwell Technologies (NASDAQ: MXWL)
In a report released yesterday, John Quealy from Canaccord Genuity reiterated a Hold rating on Maxwell Technologies (NASDAQ: MXWL), with a price target of $4.50. The company’s shares opened today at $4.61, close to its 52-week low of $4.20.
“We maintain our HOLD rating and $4.50 price target. Investment highlights Not many surprises on the quarter—ultracapacitor revenue was light largely due to a slowdown in Chinese wind turbine installations and continued delays regarding formal guidance from the Chinese government on the bus subsidy front. Outlook is mostly in line with expectations, with dynamics driven by continued ultracap weakness, somewhat offset by an increase in high-voltage sales. Allusions to a 2018 inflection are tempting, but we believe it is too risky to estimate the binary outcome of Chinese regulatory policy and too early to evaluate the likelihood of several unproven applications coming online and being meaningful revenue contributors. That said, we do not dismiss the possibility of an inflection and take a cautiously optimistic stance, taking our 2017 revenue estimates up in the interim. Maxwell continues to pursue many different end-markets, finding some lumpy success along the way. Notably, in the China bus market, deliveries are uncertain around subsidy program announcements. In the auto market, applications for e-active suspension, start-stop, and e-turbo are starting to find design wins more frequently. In the wind market, wind turbines in China have contributed a large portion of revenue earlier this year, but have since slowed down.”
According to TipRanks.com, Quealy is a 4-star analyst with an average return of 1.8% and a 44.7% success rate. Quealy covers the Industrial Goods sector, focusing on stocks such as Emerson Electric Company, Darling Ingredients, and Lsi Industries Inc.
Currently, the analyst consensus on Maxwell Technologies is Hold and the average price target is $4.50, representing a -2.4% downside.
In a report issued on October 27, Roth Capital also reiterated a Hold rating on the stock with a $5.50 price target.
Endurance International (NASDAQ: EIGI)
According to TipRanks.com, Helfstein is a 5-star analyst with an average return of 7.8% and a 55.1% success rate. Helfstein covers the Technology sector, focusing on stocks such as Interxion Holding N.V., IAC/InterActiveCorp, and Angie’s List Inc.
Currently, the analyst consensus on Endurance International is Moderate Buy and the average price target is $9.17, representing a 27.4% upside.
In a report released yesterday, Jefferies also reiterated a Buy rating on the stock with a $9.50 price target.