Analysts’ Top Technology Picks: ALRM, DQ

By Austin Angelo

There’s a lot to be optimistic about in the Technology sector as 2 analysts just weighed in on Alarm.com (NASDAQ: ALRM) and Daqo New Energy (NYSE: DQ) with bullish sentiments.

Alarm.com (NASDAQ: ALRM)

In a report released today, Darren Aftahi from Roth Capital reiterated a Buy rating on Alarm.com (NASDAQ: ALRM), with a price target of $39. The company’s shares opened today at $33.97, close to its 52-week high of $34.43.

According to TipRanks.com, Aftahi is ranked 0 out of 5 stars with an average return of -8.1% and a 38.4% success rate. Aftahi covers the Technology sector, focusing on stocks such as Angie’s List Inc., Mitek Systems Inc, and Remark Media Inc.

Currently, the analyst consensus on Alarm.com is Moderate Buy and the average price target is $32.50, representing a -4.3% downside.

In a report released yesterday, Credit Suisse also reiterated a Buy rating on the stock with a $35 price target.
Daqo New Energy (NYSE: DQ)

Roth Capital analyst Philip Shen reiterated a Buy rating on Daqo New Energy (NYSE: DQ) yesterday and set a price target of $35. The company’s shares opened today at $21.92.

Shen wrote:

“We expect an inline quarter, though results could fall just short of our estimates as poly pricing may have been modestly below our $16/kg forecast in the quarter. As for the Q4 guide, we are not expecting any surprises as we believe demand remains sufficient for DQ to fully utilize its manufacturing capacity . We maintain our Buy and $35PT as we believe the company could generate $4 of EPS in 2017. Thoughts for Q3. Shares of DQ have significantly outperformed in 2016 with the stock up 34% YTD vs. the Guggenheim Solar ETF (TAN) of -43%. Given the election result in the U.S., we believe shares could continue to outperform as tariffs on poly entering China are more likely to remain in place reinforcing a situation of tight supply, in our view. With continued tight poly supply in China given the protectionist tariffs, we believe DQ is well positioned to generate EPS of $4 in 2017 given the company’s cost down expectations and the potential for relatively healthy poly pricing despite the sharp decline in cell and module ASPs that has occurred. We believe shares are attractively valued at only 5.5x our 2017 EPS estimate.”

According to TipRanks.com, Shen is ranked 0 out of 5 stars with an average return of -18.8% and a 22.0% success rate. Shen covers the Technology sector, focusing on stocks such as SolarEdge Technologies, Maxwell Technologies, and Orion Energy Systems.

Daqo New Energy has an analyst consensus of Moderate Buy.