- Apple (AAPL +0.2%) is an unsurprising name among top tech picks for 2017 from RBC Capital Markets, and it joins Broadcom (AVGO +0.7%), Nvidia (NVDA +2.5%), Cisco Systems (CSCO +0.2%) and Texas Instruments (TXN +0.2%) among the firm's best large-cap bets.
- Apple's likely to benefit from an iPhone 8 upgrade supercycle, say Amit Daryanani and Mitch Steves, and its services business is growing nicely. RBC's price target is $125, implying 7%-plus upside.
- RBC named SMID picks as well: Amphenol (NYSE:APH); Analog Devices (ADI +0.5%); Arris International (ARRS -1.3%); CDW (CDW +2%); and Microsemi (MSCC +0.7%).
- Cisco (price target $35, 15% upside) will benefit from a few catalysts including its ongoing mix shift away from switching and routing, while Nvidia (price target $115, 5% upside) has the group's "cleanest secular growth story."
- Meanwhile, "Trumponomics" will help a number of tech companies in the coming year, the firm says. Repatriation of foreign profits should also give Apple a boost, as well as U.S. semiconductor companies.
- "Trumponomics should drive the narrative for 2017 given widespread implications for our coverage group," Daryanani and Steves say. "Beyond that, we think fundamentals will enable a better revenue and margin narrative for most companies in 2017 with continued focus on M&A."
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