UBS analysts, in a note to clients on Tuesday, revealed their “most compelling” ‘Buy’-rated investment ideas from the Telecommunications, Media, and Technology (TMT) sectors.
They began with NIQ Global Intelligence Plc (NYSE: NIQ), or NielsenIQ, a consumer intelligence company, in which they recently initiated coverage.
The analysts believe the market underappreciates NIQ’s growth and efficiency impacts, while forecasting adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) margin improvements that are driven by cost efficiencies and equity quality enhancements.
Next up is Walt Disney Co (NYSE:DIS, ETR:WDP), in which they continue to see the company’s Parks division as a value driver for the stock. It supports their view that Disney can grow its earnings per share (EPS) at a better than expected ~17% compound annual growth rate (CAGR) through fiscal 2027.
American Tower Corp (NYSE:AMT) also made their list. The communications infrastructure stock’s valuation is at multi-year lows, which presents an attractive opportunity in their opinion.
“American Tower is poised to benefit from increased US carrier activity and accelerated international growth,” the analysts wrote.
Amazon.com Inc (NASDAQ:AMZN), meanwhile, is the UBS analysts’ top internet large cap pick, as the company “appears most poised for growth due to investments in e-commerce, cloud, advertising, and satellites”.
In the small and mid-cap internet space, AppLovin Corp (NASDAQ:APP) is their best idea. The analysts expect AppLovin to execute on a combination of demand and supply expansion initiatives that could improve the efficacy of Axon 2.0, which could deliver upside to its stock price performance.
Their price target of $810 per share represents a 27% potential return from the stock’s closing price on September 26.
Finally, in the payments space the analysts have Mastercard Inc (NYSE:MA) as their top pick. They believe Mastercard provides diversified exposure across spend categories and benefits from robust growth in value-added services.
The company’s key strengths include strong profitability, competitive moats, scalability, and EPS resilience, according to the UBS analysts.