UniCredit Bank Top Picks for European Technology Sector

October 12 00:00 2011

LONDON, October 12 (RainbowNewsLine.com) – Analysts at UniCredit Equity Research have provided a preview on European Technology sector and has selected Capgemini, Infineon, Logica and Software AG as their top picks.

In a research note published this morning, analysts at UniCredit Research suggest the best shares to pick under low to zero growth scenarios. Considering the possibility of a recession, analyst has evaluated the possible impact on shares of semiconductor and IT & Software services. In case the recession materializes, Semi-conductor share prices is at a risk of experiencing 30% fall causing top-line share Infineon to slip to €4. Under similar conditions analyst estimates 31% and 22% of downward risk in IT & Software companies.

The analyst views Infineon as the top pick in semiconductor universe while reducing its target price from €9 to €8.50 and holding a BUY rating on it. COR&FJA is downgraded from HOLD to SELL  with a target price of €1.30.  ASML was affirmed a BUY rating while reducing its target price from €32 to €30. While we believe the earnings downward revision process is far from being over, a combination of strong balance sheets, relatively low valuation levels and intact underlying growth drivers should continue to make semiconductor and software & IT services shares selectively attractive, the analysts add.

According to UniCredit Research, top picks of European IT & Software industry are Capegemini, Logica and Software AG.