Analysts see opportunity in buying these tech sector stocks
Analysts have been bullish on technology sector stocks investing in Indonesia on prospects of eCommerce and Internet growth in the country. A Google and Temasek study expects that by 2025, Indonesia will make up 52% of all e-commerce activity in South East Asia. Analysts’ estimates tend to drive short-term movements of stocks. Changes in ratings and estimates guide investors towards what markets are expecting from a particular company.
The table above lists the ratings and 12-month target prices of the most attractive technology sector stocks.
Analysts are most bullish on Samsung (SSU), Alibaba and Facebook (FB) as these stocks have received nearly 90% buy ratings, and less than 10% sell ratings. Samsung has a consensus target price of KRW 2,075,000, resulting in a return potential of 21% over the next 12 months, highest among its peers. Its closest rival, Apple (AAPL) has received 39 buy ratings, 1 sell rating, and 10 hold ratings. Analysts expect its stock to gain 8% over the next 12 months.
Analysts are most bearish on Twitter (TWTR), and 13 analysts have rated it sell. The stock has received 5 buy recommendations and 20 hold recommendations. With a target price of $14.4, it has a negative return potential over the next 12 months.
However, they expect Blackberry (BBRY) to correct by 1% respectively in the next one year. Blackberry has received 5 buy ratings, 3 sell ratings and 11 hold ratings. Blackberry’s stock has corrected 19% since 2015 and analysts expect are still bearish on it. Shares of the company recently surged 17% after news of Qualcomm rewarding it $815 million for royalties that it overpaid earlier were announced. As per a Barron’s report, Blackberry overpaid Qualcomm royalties as a result of arbitration.