Neethum Seas at 30% Upside Potential for these 3 Tech Stocks
On Wall Street, who is leading the charge? take. Tech is once again at the helm, due to the high price, with the space players pulling lower in the market in September. The epidemic helped drive a move towards remote work and telecommunications, and it placed a premium on technical products. From the 5G rollout, to improving semiconductor chips, to expanding IoT and smart device capabilities – tech is everywhere, and it’s growing rapidly. With this in mind, we turned to Needham, which is among the top ten on TipRank’s list. For some inspiration, top performing research firms. Analysts at the firm have uncovered three tech stocks that appear particularly compelling, with at least 30% upside potential for each. We’ve used the TipRank database to draw details on these three tech pix to find out what makes them so. Compelling Opportunities. Silicon Motion offers high-performance storage solutions widely used in smartphones, PCs, data centers, and commercial and industrial applications, bringing extensive experience to the Silicon Motion (SIMO) table. After a banging quarter, Needham believes that this technical name has a bright future ahead. Analyst for the firm, Rajvindra Gill tells clients that based on the promotion of SIMO, Q3 sales are set to rise 8% above their original forecast, including EPS. Beating his estimate by $ 0.09. What was behind this solid performance? A recovery in client SSDs. In Q2, SIMO’s client SSD business declined, particularly module manufacturer components, as NAND flash manufacturers allocated NAND capability away from client SSDs to support spikes in data consumption over the network. However, the opposite happened in Q3. With a stagnation in hyperscale spending, module customers were allocated additional NAND capacity as NAND pricing quarter-over -quarter.To this end, Gill believes NAND pricing is up another 5-10% in Q4. It may decline quarter-on-quarter. He added, “We expect a decline in Q4 to further stimulate customer SSD adoption in Q4 as this market is quiet price elastic, especially the channel market.” To some extent, a rebound in China’s handsets with a continuous ramp of 5G. The handset contributed to the SIM’s strong performance, in Gill’s opinion. What’s more, the analyst argues that the next generation of gaming consoles and desktop gaming may further increase demand for SSDs. Gill explains that based on MSI’s report, board makers for Nvidia GPUs, demand for less expensive SSDs for high-end gaming desktop computers is increasing. At this, Gill stated, “It could possibly be COVID-19 related. More people (of all ages) stay on demand as more time is spent playing video games. In addition, we expect That SIMO will be participating in the next generation of gaming consoles (PS5, Xbox) coming in the fall. SIMO is shipping its PCIe SSD controllers to seven of the NAND manufacturers sold in game consoles; we believe that in five There may be two SIMO suppliers. ”Even if this was not enough, even though the penetration rate for laptops was relatively 80–90% higher, Gill believes that the desktop market for SSDs could accelerate attaching rates. Is, driving upside down CY21. In all of the above, Gill stayed with the bull. With a Buy rating, he holds a $ 55 price target on the stock. Investors could get a 30% profit, is that target met in the next twelve months Must be done. (To see Gill’s track record, click here) Turning to the rest of the street, the bulls are on it. With 4 buys and a lone hold, the word on the street is that SIMO is a strong buy. is. At $ 49.60, the average price target implies ~ 18% upside potential. (See SIMO Stock Analysis at TipRank) Domo (DOMO) As a business cloud software specialist, Domo helps its customers integrate data from any source, transform data into live visualizations, and extend BI to apps is. Based on positive momentum as well as new deals, Needham thinks it’s time to snap stocks. After the company reported impressive fiscal Q2 2021 results, 5-Star analyst Jack Andrews stands square with the bull. Revenue of $ 51.1 million drove his and consensus estimates out of the water. Additionally, subscription income, billings and non-GAAP EPS exceeded its expectations. “In our view, DOMO appears to benefit from the ongoing epidemic and tailwinds related to improved sales execution (ie Playbook and a better partner ecosystem), as it is notable that the amount of large deals within the quarter,” explained Andrews. According to management, the demand to digitalize business processes and real-time analytics is accelerating as a result of the epidemic. It is also seeing more customers allocate IT budgets to modernize BI and gather insights from dark data For this, Domo finalized more than $ 100,000 deals in hard-hitting industries such as fitness and manufacturing. On top of that, it closed a multi-million dollar deal with one of the world’s largest retailers. Diya, which started with an initial use case to build insights into its analytics stack, but now extends to new use cases such as an application for store restocking. Andrews also points out that state-level COVID tracking Working in favor of speed company She holds, as Iowa State significantly expanded and extended its contract for two years. With the help of a partner, it embarked on a seven-figure contract to launch a public-facing website to track pandemic funding grants in fiscal year 2013 to 2021. More so, Andrews highlighted the cash flow from management on its path to “encourage commentary”. Breakeven, which should “mitigate any remaining financial concerns.” To accomplish this, Andrews stated, “We believe Domo has created a unique platform without future requirements of enterprise cost (self-service and scalability). Implementation. As management executes changes to its sales strategy We believe that Domo, which trades EV / revenue multiple discounts, may close the valuation gap relative to its Big Data software peer group. ”In line with its optimistic view, Andrews reiterated a $ rating. And the $ 61 price target. This target puts the upside potential at 46%. (To see Andrews track record, click here) When it comes to other Wall Street analysts, opinion is split evenly. The last three With 3 Bues and 3 Holds assigned over the months, Domo earns a Moderate Buy consensus rating. Clocking in at $ 47.17, the average price target is 13% upside potential. (See Domo Stock Analysis at TipRank) Everspin Technologies (MRAM) Final But at least, we don’t have Everspin Technologies, which is discrete magnetoresistive RAM or I Manufactures and manufactures GNetoresistive Random-Access Memory (MRAM) products, including toggle MRAM and spin-transfer torque MRAM. (STT-MRAM) product family. Although the company has recently faced headwinds, Needham believes MRAM may be a long-term winner. Also, analyst Rajvindra Gill, who also covers Simo, is a serious fan. In line with the broader industry, data center demand has been moderate, coupled with COVID-19-related headwinds, resulting in Q3 sales guidance that missed the mark. It should be noted that STT-MRAM is almost entirely a data center, whereas some data center exposures are used in RAID controllers since the toggle is toggle. Additionally, thanks to COVID-19, data center demand has increased in the first half of 2020, colliding well with MRAM. However, by the end of Q2, customer inventory had increased. “While this growth is partly due to supply chain concerns, we believe the main reason is a potential peak and expected slowdown in data center demand … However, we consider data center inventory digestion as a temporary setback See, with expected recovery in Q4, ”commented the analyst. According to the good news, MRAM thought that the COVID-19 would negatively affect the ability to secure the new design win. Said that, Q2 has seen an increase in design wins quarter-over-quarter, more than three times the prior-year quarter. Gill noted, “We expect growth to pick up as the market picks up again.” The company discontinued mass production shipments of the 32Mb toggle MRAM product to a growing set of customers, with plans to add various packages and temperature grades to expand into the new. Customer applications If this was not enough, a second significant design win for MRAM’s 1GB STT-MRAM product is expected in Q3 to begin production shipments in a permanent memory application for OEMs sold in a data center. Toggle and STT-MRAM due to the in-house work environment, Gill argues, margins for both are likely to recover over the next few quarters, driven by manufacturing capacity and lower material purchase costs. MRAM is confident for everything. Gill to maintain its Buy rating. In addition to the call, they left the price target at $ 10, suggesting a 44% upside potential. Given the consensus breakdown, it has calmed down when it comes to other analyst activity. Since Gill is the only analyst who has recently published a review, MRAM has a Moderate Buy Consensus Rating. (See MRAM Stock Analysis at TipRank) To find good ideas for stock trading at attractive valuations, buy TipRank’s Best Stocks, a newly launched tool that unites all of TipRank’s equity equities. Disclaimer: The opinions expressed in this article are solely those of select analysts. Content is to be used for informational purposes only. It is very important to do your own analysis before making any investment.