By its own admission, 2022 was a nightmare for tech bulls (like itself) reckons US broker Wedbush, but always upbeat the broker reckons the fight back will start next year.
“While the Fed meeting this week and a 50 bps hike likely on the docket will be front and center for global investors, we believe the underlying set-up for the tech sector is starting to be incrementally bullish into year-end and 2023.
“2023 will be a ‘fork in the road’ for the tech sector with clear winners and losers that will be defined by those vendors and management teams able to successfully navigate this Rubik's Cube macro and emerge stronger on the other side of the storm.”
The good news, according to Wedbush, is that the tech sector can rise by roughly 20% in 2023 from current levels with Big Tech, software, and semiconductors leading the charge despite the macro and Fed wild cards.
Here are the broker’s selected winners for the year ahead, all of which are US-listed
- Favourite Overall Tech Name: Apple
- Favourite Cloud Names: Microsoft and Salesforce
- Favourite Cyber Security Names: Palo Alto, CyberArk, Checkpoint, Zscaler
- Favourite Under the Radar GARP Names: Ziff Davis, NICE, Alight, Planet Labs (NYSE:PL)
- Top M&A Candidates: Cerence, Varonis, Tenable, Progress Software (NASDAQ:PRGS), Qualys
- Biggest Activist Target: Salesforce