Wedbush Securities is bullish on tech despite the darker 2023 macro overhanging cloud
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Wedbush Securities broke down its outlook for the technology sector as Wall Street finalizes the 2022 trading year and looks ahead towards 2023. The firm believes the sector will remain under pressure but opportunities within the space are still available.
In a note to its investors, Wedbush Securities stated: âWe believe tech stocks are reflecting massive amounts of bad news priced in and the set-up overall into 2023 is net bullish despite the darker macro, given the risk/reward valuation levels on the tech sector and the most under owned we have seen tech stocks since the 2009 timeframe.â
The financial institution also outlined some of its top Christmas wishes and predictions for the tech sector in 2023 and highlighted that the segment may see some mergers and acquisitions as it said: âWe believe the tech sector is ripe for a massive phase of consolidation.â
The firm went on to say: âWe believe cyber security spend will be a pillar of strength despite the softer macro into 2023.â Some of the names Wedbush Securities likes include Palo Alto Networks (NASDAQ:PANW), CyberArk Software (NASDAQ:CYBR), Zscaler (NASDAQ:ZS), Tenable Holdings (TENB), and Check Point Software Technologies (CHKP).
Additionally, Wedbush placed outperform ratings on all the above names and gave price targets as follows: PANW - $200, CYBR - $170, ZS - $180, TENB - $48, and CHKP - $145.
Moreover, the financial firm believes that Apple (NASDAQ:AAPL) needs to move its iPhone production away from China as Covid lockdowns continue to cause issues along with the Foxconn situation. Wedbush also thinks that 2023 will be the year that Apple launches its Apple Glasses. It also listed Apple as an outperform and added a price target of $200.
Bigger picture: âWe believe Big Tech will likely need to cut another 8%-10% of their workforce to manage this downturn during 2023 and adjust to lower growth profiles ahead.â
In broader market news, stock indices ticked higher following a second-straight down week for the broader market.