BOSTON (TheStreet) -- It's been tough sledding for technology stocks this year, and Goldman Sachs' (GS) "conviction buy" list for tech companies are indicative of that, showing mixed results. Still, the Wall Street bank is hanging in there with six of its picks from the start of the year.The firm had seven stocks on its list at the start of 2011 and, since then, has dropped Sapient ( SAPE) from the "conviction buy" list and added Synchross Technologies ( SNCR).
6. NCR ( NCR) carries a $24 price target from Goldman, a 30.7% premium to its current price of $18.23. Its 52-week high is $20.62. As a maker of automated self-service machines, it is the largest global vendor of ATMs and also sells point-of-sale terminals and self-service check-out systems for retail stores, and self-check-in kiosks for airlines and hotels. Goldman analysts said NCR is the firm's top mid-cap financial-technology pick after a very strong first quarter. NCR's forward price-to-earnings ratio is a relatively low 9.1, and the company has little long-term debt. A review of analysts' ratings by S&P found two "buys," four "buy/holds" and four "holds." Its shares are up 19.7% this year and 43% over the past 12 months, giving it a market value of $2.8 billion.
Qualcomm ( QCOM) is the developer of code division multiple access (CDMA) technology, which is a key communications standard used in wireless networks. The company is a supplier of chips to wireless handset makers and also generates royalty revenue by licensing its intellectual property for CDMA. Qualcomm shares get a price target of $68 from Goldman, a premium of 26% to its current price of $54.22. They reached a 52-week high of $59.84 late last year. The company's shares have a $91 billion market value. According to a FactSet review of analysts' ratings, it found 30 "buy" ratings, six "outperforms," five "holds" and one "sell."
Apple ( AAPL) designs consumer electronic devices, including PCs, the iPad, the iPhone and the iPod. And it is diversifying rapidly. Its iTunes online store is now the largest music distributor in the world: It sells and rents TV shows and movies and sells applications for the iPhone and iPad. Goldman has a $470 price target on it shares, about a 44% premium to its current price of $326.93. Its shares have traded as high as $364.90 this year. They are up 2.7% this year and 22% over the past 12 months, giving the company a market value of $302 billion. In its fiscal second quarter, Apple reported that revenue increased by 83%, driven by 126% iPhone revenue growth, 32% Mac revenue growth and $2.8 billion of iPad sales. In a June 14 research note, Goldman analysts said "we would continue to be buyers of Apple's stock, and we maintain our (convictions list 'buy') and 12-month target price of $470 (based on an 18 times price-to-earnings) multiple on our (calendar year 2011 earnings per share estimate). We believe current valuation represents an attractive buying opportunity, as Apple shares trade at just 11 times our 2012 estimate" which is nine times its cash balance. S&P's review of analysts' ratings found 28 "buys," 24 "buy/holds," three "holds" and one "sell."