BOSTON (TheStreet) -- Goldman Sachs' (GS) latest list of "buy"-rated technology stocks include old reliables, such as iPad and iPhone maker Apple (AAPL) and data-storage company EMC (EMC). But it also includes transaction-management-services provider Synchronoss Technologies (SNCR).Goldman analysts have been shaken up by the shift in investor sentiment, owing to slower-than-expected U.S. economic growth and a deep hole in European debt that's had some talking about a breakup of the European Union. The global investment bank said in an Aug. 15 research note that expectations for slower global growth and the possibility of a U.S. recession are "clouding our visibility on IT-services stocks as we shift into 2012." As a result, the bank trimmed earnings estimates on the companies in the sector by an average of 3% and cut price targets by an average of 10% to "reflect a more conservative view on 2012 growth."
EMC ( EMC) is a leading provider of hardware, software and services for enterprise-network storage. Its revenue contribution by segment is data storage (75%), VMware (17%), information intelligence (4%) and security (4%). Its outlook is also being boosted by its growing presence in the fast-growing Cloud computing, which is the remote access of computer systems by mobile computers. EMC shares get a $29 price target from Goldman, a 27% premium. Its shares are down 3.8% this year, but up 7% this year, giving it a market valuation of $47 billion.
NCR ( NCR) is the largest global vendor of automated teller machines (ATMs) and 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 in an Aug. 28 research note that the company's recent acquisition of Radiant should be accretive to earnings, and recently announced Brazil and China contracts "will help augment a healthy core model. Reflecting these transactions, our revised (earnings) estimates now stand at 24% and 18.5% above" other analysts' consensus estimates for 2012 and 2013 earnings. Goldman analysts said in a research note that although the financial-services sector (56% of total revenue) and European customers (36%) are under financial duress, "we think NCR's solid order growth and backlog will insulate the model in the near-term." It said NCR's management expects to see solid growth in its U.S. financial self-service business over the next three to five years as regional banks continue to adopt deposit automation technology and as national banks upgrade their automated ATMs. Goldman gives NCR shares a $21 price target, a 14% premium. Shares have gained 16% this year and 27% over the past 12 months for a market valuation of $2.9 billion.
Qualcomm ( QCOM), a leader in the digital-wireless-telecommunications sector, gets a $61 price target from Goldman over the next year, a 13% premium. The company owns more than 10,000 patents that make up the key components to wireless telecommunications that enables cell phone usage and connectivity and the growing use of smartphones. It's already one of the world's largest chipmakers and a key supplier to wireless handset makers. In its most recent fiscal quarter, it reported that earnings rose 35% and revenue 34%. Qualcomm's shares are up 8.5% this year and 31% over the past 12 months, giving it a market valuation of $90 billion.