After a week of tech earnings results that fueled a market gain, there are still plenty of top shares to buy in the sector ahead of profit reports, according to Morgan Stanley. The firm named a slew of companies that have major upside heading into quarterly results. CNBC Pro combed through top Wall Street research to find more must-own tech stocks heading into earnings. They include: Palo Alto , Docebo, R1 RCM, Tenable and Flywire. Flywire The global payment tech network has one of the “most compelling” risk/rewards around, the firm says. Analyst James Faucette upgraded the stock earlier this week to overweight from equal weight saying that revenue growth concerns are overdone. “FLYW is accelerating the pace and size of new client signings which should drive higher levels of net new contribution vs. historical trends,” he said. Faucette urged investors to remain calm adding that the market has growth deceleration fears all wrong. “In fact, our base case growth assumption could prove conservative given it implies a lower than historical level of net new customer contribution a growth component that we think is primed for acceleration next, ” he said The stock is down 4% this year, but Faucette says shares could be due for a re-rating if growth continues to remain elevated. Flywire is also due to report fourth-quarter earnings in late February. Palo Alto Networks Analyst Hamza Fodderwala said the firm’s recent security checks show cyber threats remain a top priority for IT. That bodes well for Palo Alto in 2024 and beyond, according to Fodderwala. The firm says it sees a long runway for growth for the cyber company as its competitive positioning remains robust, he wrote. Further, Palo Alto is better positioned for AI than investors believe, Fodderwala added. “With large unique data sets and market leadership across multiple major security categories, we think PANW is best positioned among the pure-play security vendors to deliver AI-driven security automation,” he…
2024-02-03 09:19:00
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