New York, December 18 (alphajetsusa.com) – Analyst Brian Modoff at Deutsche Bank Securities reports on Wireless Equipment – Signals to Noise (S2N).
In a research note published on December 17, the analyst mentions that while looking ahead into next year, it is considered that “Platform Plays” are an improved way to play the essential expansion themes in Data Networking, in opposition to “Product Plays”.
Furthermore, in terms of LTE network builds, LTE handset shipments and the IT landscape in most cases, an exciting year is observed too. In this stance, point of view is discussed on the main development themes. On the whole, bottom line is that on big caps QCOM and CSCO, mid-cap FFIV, and small cap CIEN, XXIA and PSMI positive attitude has been carried.
In addition to this, at a small premium to the market (that is average P/E in the 14x range; CY13 pro-forma basis), stocks in wireless and networking universe trade. Moreover, the long-term expansion rates of the networking names are in line to industry development rates of respective product categories and besides, the target prices are concluded using a DCF analysis method.
Also, the key risk factors (on the upside and downside) are unexpected moves in the competitive surroundings (launches of latest product, technology interruptions, and so on) and moves in IT spending trends, the analyst adds further.