Wall Street Analysts Are Bullish on Top Technology Picks

By Jason Carr

There’s a lot to be optimistic about in the Technology sector as 3 analysts just weighed in on Apptio Inc (NASDAQ: APTI), Trade Desk Inc (NASDAQ: TTD) and Lumos Networks (NASDAQ: LMOS) with bullish sentiments.

Apptio Inc (NASDAQ: APTI)

In a report released yesterday, John Difucci from Jefferies reiterated a Buy rating on Apptio Inc (NASDAQ: APTI), with a price target of $29. The company’s shares closed yesterday at $19.23.

Difucci wrote:

“We attended the Technology Business Management (TBM) Council’s 2016 conference in San Diego this week, an annual CIO networking and TBM education event led by Apptio. While there was nothing to change our positive view of the stock, we share our takeaways below. What is the TBM Council? Apptio formed the TBM Council as a separate non-profit entity in 2012 to encourage the growth of the TBM market. With over 2,900 CIOs, IT professionals, and IT finance professionals, the community aims to establish industry-endorsed best practices for TBM and create a network effect for TBM solutions. This year’s conference saw about 1,200 attendees (30% growth over 2015), of which around 40% were not current Apptio customers and were there primarily to learn and network. The Apptio TBM Unified Model (ATUM)… In conjunction with the TBM Council, Apptio has created a standardized, unified model for IT costing to guide and further enable best practices across its customer base – the Apptio TBM Unified Model, or ATUM. Similar to the way GAAP accounting provides a “common language” for and guides executives, accountants, and financial professionals in thinking about business models and performance, ATUM aims to provide a common language for business information required by CIOs to help guide their management of the IT business. Customers we spoke with credited this unified model with easing implementations from both a technical and cultural standpoint.”

According to TipRanks.com, Difucci is a 5-star analyst with an average return of 7.2% and a 54.3% success rate. Difucci covers the Technology sector, focusing on stocks such as SS&C Technologies Holdings, CommVault Systems, and AVG Technologies.

Currently, the analyst consensus on Apptio Inc is Moderate Buy and the average price target is $24.80, representing a 29.0% upside.

In a report issued on November 2, Pacific Crest also reiterated a Buy rating on the stock with a $26 price target.
Trade Desk Inc (NASDAQ: TTD)

In a report released yesterday, Brian Fitzgerald from Jefferies reiterated a Buy rating on Trade Desk Inc (NASDAQ: TTD), with a price target of $35. The company’s shares closed yesterday at $23.43.

Fitzgerald said:

“The Trade Desk executed well in its first quarter as a public company besting the Street on both the top and bottom line. We continue to believe that The Trade Desk offers a differentiated platform that enables Agencies to better execute digital ad campaigns on a scaled basis. Reiterate our Buy and $35 PT. During the first quarter as a public company The Trade Desk continues to show robust growth. TTD benefited from additional client spend and a very sticky client base (95%+ retention). Clients continue to use a variety of data (clients bought 2x the amount of data Y/Y) to execute targeted campaigns across muultiple channels.”

According to TipRanks.com, Fitzgerald is a 5-star analyst with an average return of 11.4% and a 65.7% success rate. Fitzgerald covers the Technology sector, focusing on stocks such as Endurance International, Activision Blizzard, and IAC/InterActiveCorp.

Currently, the analyst consensus on Trade Desk Inc is Strong Buy and the average price target is $32.33, representing a 38.0% upside.

In a report issued on November 7, Cantor Fitzgerald also reiterated a Buy rating on the stock with a $30 price target.
Lumos Networks (NASDAQ: LMOS)

Jefferies analyst Scott Goldman reiterated a Buy rating on Lumos Networks (NASDAQ: LMOS) yesterday and set a price target of $18. The company’s shares closed yesterday at $14.58, close to its 52-week high of $14.83.

Goldman noted:

“Enterprise revenue growth accelerated to 17.2% and the longer-term outlook continues to point to an attractive mid-teens CAGR. In addition, the company took two important steps in its transition to becoming a pure play fiber provider: initiating the separation of regulated assets and the acquisition of Clarity. Though small, the deal is indicative of management discipline while expanding the addressable market. Maintain Buy and raise target to $18. Adjusted Revenue Inline; Profitability Strong. Reported revenue of $51.8mn was 1.1%/1.8% below our/Street estimates, but included a $480k RLEC Access true-up. Excluding this benefit, revenue met our expectations. Relative to our estimates, Data was inline as lower FTTC offset better Enterprise and Transport. Residential & Small Business came in ahead, while RLEC Access, even ex. the true-up was narrowly below. Adj.”

According to TipRanks.com, Goldman is a 4-star analyst with an average return of 11.4% and a 61.9% success rate. Goldman covers the Technology sector, focusing on stocks such as Boingo Wireless Inc., Consolidated Comms., and GTT Communications.

Currently, the analyst consensus on Lumos Networks is Moderate Buy and the average price target is $18, representing a 23.5% upside.

In a report released yesterday, Drexel Hamilton also reiterated a Buy rating on the stock with a $18 price target.