Canaccord's two consumer stock picks added to this update
BOSTON ( TheStreet) -- Salesforce.com (CRM - Get Report) and Qualcomm (QCOM - Get Report) are the technology stocks to buy for 2012, Canaccord Genuity analysts say, while Netflix (NFLX - Get Report) and Research In Motion (RIMM) are to be avoided.
Canaccord Genuity, the capital-markets division of investment bank Canaccord Financial, was founded in Canada as a venture-capital firm in 1950, and has since expanded operations into the U.S., the U.K., China and Australia. The firm's wealth management unit had more than $14 billion (Canadian) in assets under administration as of Sept. 30.
SemiconductorsCanaccord's Picks: Analog Devices (ADI), which makes digital signal processing integrated circuits , and Integrated Device Technology (IDTI), which makes a range of semiconductor products. Analyst Bobby Burleson says that, entering 2012, investors need to understand how constrained PC growth could be because of an inventory correction, lackluster end demand, and the disk drive shortage following the floods in Thailand. "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," Burleson writes. "Heading into 2012, we like names with broad-end market exposure and low PC exposure." Burleson picks Analog Devices because of the potential for more dividend increases. As a bonus, the company has virtually no PC exposure, he says. Similarly, Integrated Device also has limited PC exposure and Burleson expects the company gross margins to rebound in 2012 as the company completes its transition to a fabless model.
Check Out Our Best Services for Investors
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts