J.P. Morgan does not have research coverage on all the companies they met with, but they did come away positive on the sector and for some companies going forward the rest of the year.
Guidewire Software Inc. (NYSE: GWRE) is a stock covered by J.P. Morgan, and it is rated Overweight. The company provides system software to the property and casualty insurance industry primarily in the United States, Canada and Australia. It provides Internet-based software platforms for core insurance operations, including underwriting and policy administration, claim management and billing. Europe is seen as a key growth segment for the company in fiscal 2015. The J.P. Morgan price target for this top name is $58. The Thomson/First Call consensus target is $52.40. The stock closed Wednesday at $38.44 a share.
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RingCentral Inc. (NYSE: RNG) is a leading provider of cloud-based business communications solutions. Easier to manage and more flexible than on-premises communications systems, RingCentral’s cloud solution meets the needs of modern distributed and mobile workforces, while eliminating the expense and complications of on-premises traditional hardware-based systems and software. J.P. Morgan does not cover the stock, but the firm sees the company expanding distribution through carrier relationships and geographic expansion among the keys to growth going forward. The consensus price target for the stock is $21.25. RingCentral closed trading Wednesday at $13.29.
Symantec Corp. (NASDAQ: SYMC) is also not covered at J.P. Morgan. The company is looking to make more strategic investments around the security and information management segments in the coming year. Additionally the company expects to return finally to revenue growth in the second half of their fiscal 2015 year, with the target of achieving operating margins of around 30% by year-end. J.P. Morgan pointed out that while the company is still on a search for a new CEO, forward progress is still the goal, and investment areas for growth focus definitely will include security and mobility. The consensus price target is $22.21. Symantec closed Wednesday at $21.28.
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Veeva Systems Inc. (NASDAQ: VEEV) is well liked at J.P. Morgan as they have a rating of Overweight on the stock. The company is a leader in cloud-based software for the global life sciences industry. Veeva has more than 200 customers, ranging from the world’s largest pharmaceutical companies to emerging biotech. J.P. Morgan pointed out that of the 450,000 potential users of CRM solutions in the Life Sciences field, that Veeva has penetrated 40%. However, based on master agreements, the company sees a path to getting the next 20% to 25% penetration completed. J.P. Morgan has a $27 price target, while the consensus target is higher at $31.340. Veeva closed Wednesday at $21.73.
VMware Inc. (NYSE: VMW) has been on fire and is a leader in cloud storage software. VMWare’s core business is in server virtualization, which allows virtual computers to run different operating systems and applications on one physical computer. That improves business efficiency and the utilization of data, and it saves on costs. Quickly, it has become a fast-growing business, one that is derived from licensing and service revenue. While competition is keen, the company is still a market leader.
J.P. Morgan does not cover the stock. The consensus price target is $110.33. VMware closed Wednesday at $96.48. Investors can also indirectly own VMware by buying the stock of storage giant EMC Corporation. The company owns more than 43 million shares of the stock. EMC closed Wednesday at $26.89.
While the market may be getting ready for an early summer breather, one thing is for sure. The economic data are starting to turn positive. With companies looking to expand and become more efficient at the same time, productivity becomes the key. These top companies are at the forefront of helping corporate America with some of those needs.
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