A Closer Look At 4 Tech Stocks Getting Higher Target Prices

Chris Lau, Kapitall: 4 big-name technology companies received a bump in their target price. The upgrade may have contributed to the upward price movement recently. Investors agreeing with the upside in these companies might want to wait for shares to pull-back, before entering a position. The reason is that the target price upgrade may have temporarily inflated the share price. [Related lists:  Why Expect More Price Swings from These 4 Biotechs]

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The companies to watch are:

Screen shot 2013-03-04 at 10.40.57 AM

Analysis

1)  Hewlett-Packard Company (HPQ)

Analysts raised the target price in shares of Hewlett-Packard by 3.75%. From the 16 analysts covering HP, the current target price rose to $16.73. HP closed well-above the target, trading recently at $20.15 after reporting quarterly results that were not as poor as feared. Investors could be getting too optimistic for the battered company, although HP made a few moves recently. The company sold the very costly webOS and IP-related property to LG (LPL). LG plans to use the operating system in its smart TVs.

HP also announced its embrace for the Android operating system. The company will be selling a 7-inch tablet for just $170, underpricing tablets from Amazon.com (AMZN) and Google’s Nexus (GOOG) .

 

2)  Autodesk, Inc. (ADSK).

Analysts raised their target of 3D software maker Autodesk by 4.88% to $42.15. Autodesk closed recently at $37.36. On February 25 2013, the company reported Q4 earnings of $0.53 per share, beating consensus by $0.04. Revenue rose just 2% from the previous year to $607M, beating analyst estimates by $20.84M.

Autodesk guided Q1 below consensus. Analysts expected an EPS of $0.51 on revenue of $590.6M, but Autodesk guided EPS of $0.41 – $0.46 on revenue of $570M to $590M. In Q4, platform solutions sales dropped 7%, while media/entertainment sales declined 16%. Sales to Asia-Pacific rose 11% and manufacturing sales increased 5%.

 

3)  Salesforce.com, Inc. (CRM)

30 analysts expect CRM is worth $200.18 on average, up from $187.54. Analysts have a bullish 4.4 rating on the company. Salesforce reported Q4 EPS of $0.51, beating estimates by $0.11. Revenue rose 32% to $834.7M, beating estimates by $3.9M. The company guided earnings and revenue within consensus. For the fiscal year ending January 2014, the company expects EPS to be $1.93 to $1.97 on revenue of $3.82 – $3.87B.

Investors should note that insiders have been selling shares over the last few years.

 

4) Verisign (VRSN)

Analysts raised their target on Verisign to $42.92, well-below the recent trading price of $46.17. Verisign reported Q4 earnings in late-January 2013 that beat consensus by $0.08. The company earned $0.59 per share on revenue of $230M. Not all analysts are bullish. Credit Suisse recently downgraded the company to “Neutral” from “outperform.”

 

 

( List compiled by KAPITALL Contributor Chris Lau )

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