One would need to visit a forum or go to a conference and ask questions in order to analyse what type of tech gear is popular amongst major companies within the US as well as in other parts of the world. Deutsche Bank (NYSEARCA:DGP) analysts did exactly that and held talks with the industry’s main decision makers based on the data collected from the Chief Information Officer (CIO) Leadership Forum located in Los Angeles.
The budget for the information technology is expected to either stay flat or rise 2% to 3% for the year 2015. The amount is still a bit too much to be invested on gear. As expected, the CIO’s as well as their companies maintained their focus for this year on the same issues as last year which include private clouds, large data as well as mobile enterprise apps and application security.
The analysts at Deutsche Bank studied the CIO’s products and picked their favorite stocks to invest in the sector.
Ciena Corp. (NYSE:CIEN) is expected to raise its spending in the wireless segment in the year 2015, which is why the company was picked by the analysts at Deutsche Bank (NYSEARCA:DGP). According to the analyst’s report, most of the enterprise as well as the web data centers are in the progression of operating high speed 40/100 G optical adjoins within their data centers.
The analysts also noticed that more than 30% of the company’s sales were not generated from telecom. The bank’s price target for the company is $24 while the consensus estimate is $23.90. On Wednesday Ciena closed at $19.74 per share.
Arista Networks Inc. (NYSE:ANET) opened up to the public last year in June and proved to be last year’s hottest tech related story. The tech company offers software driven solutions for cloud networking issues. Moreover, the company has 10 / 40 / 100 Gigabit Ethernet switches along with more than 2,700 customers along with over 2 million cloud networking platforms on a global level.
Deutsche Bank’s price target for the company’s stock is $80 while the consensus price target is $82.80. On Wednesday, the company’s shares closed at $61.51.
Cisco Systems Inc. (NASDAQ:CSCO) recently shared its earnings which were not only impressive but also depicted an increase in the company’s dividend. According to Deutsche Bank (NYSEARCA:GDP), almost all of the CIO’s the company talked to at the forum wanted to be associated with the tech company and keep the tech giant as their major network merchant.
The company’s investors are paid a dividend of 2.8% which will soon be increased per share by 0.02%. The bank gave the company a price target of $32 while the consensus price target is $28.63. The company’s shares’ trading ended at $26.93.
F5 Network Inc. (NASDAQ:FFIV) declared revenues as well as earnings in the second quarter which were below expectation. Although the investors are a little skeptical about the company’s upcoming quarter, Deutsche Bank believes it still has a lot of potential. The bank sees strength in the company’s F5 Next-Generation security. The bank’s price target for the company is at $140 and it gave the company a Buy rating. The shares of the company closed Wednesday at $113.77.