Piper Sandler Says Buy These 2 Tech Stocks Now

By Chris Lange Published Sep 19, 11:33AM EDT

Follow 24/7 Wall St. on Google

This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.

Piper Sandler Says Buy These 2 Tech Stocks Now — © Thinkstock

As a recession looms, tech is usually the first to feel it. In fact, tech stocks have been some of the most beaten up this year. However, one analyst thinks it has found a couple that can weather the storm, one with over 50% upside potential.

[in-text-ad]

Piper Sandler issued calls across multiple industries within the tech sector where it sees significant potential upside. Considering the inflationary climate, finding upside is key to keeping pace with the recovery from the market lows this summer.

It is important to remember that no single analyst report should be used as the sole basis for any buying or selling decision.

[nativounit]

Array Technologies

Piper Sandler’s Kashy Harrison upgraded Array Technologies Inc. (NASDASQ: ARRY) to an Overweight rating from Neutral and raised the $20 price target to $28, which implies upside of 57% from the most recent closing price of $17.82.

According to Harrison, the company’s “strong order book” creates the potential for an attractive 2023 revenue and EBITDA outlook. He views Array as a beneficiary of the Inflation Reduction Act’s domestic content requirements, along with the manufacturing credits. At the same time, Harrison also likes the new CEO’s focus on transitioning toward free cash flow generation. He acknowledges near-term risks associated with the Uyghur Forced Labor Prevention Act but sees the potential for a more pronounced 2023 market recovery.

Array stock was last seen trading near $18, in a 52-week range of $5.45 to $27.67. Shares are actually up 13% year to date, excluding Monday’s move.

[wallst_email_signup]

Aspen Technology

Piper Sandler’s Weston Twigg reiterated a Neutral rating on Aspen Technology Inc. (NASDAQ: AZPN). It also raised the price target from $189 to $240, implying upside of 6% from the most recent closing price of $226.37.

After speaking with management, Twigg has increased confidence in the multiyear demand environment for Aspen’s solutions and its ability to reach $1.5 billion annual spending/annual contract value targets for fiscal 2026. He’s “very favorable” on the durability of Aspen’s business in the face of macro uncertainty but sees additional upside as contingent on performance above and beyond the current targets.

[recirclink id=1169739]

The stock was last seen trading near $226, in a 52-week range of $122.29 to $229.60. Shares are actually up 49% year to date.

About the Author Chris Lange →

Chris Lange is a writer for 24/7 Wall St., based in Houston. He has covered financial markets over the past decade with an emphasis on healthcare, tech, and IPOs. During this time, he has published thousands of articles with insightful analysis across these complex fields. Currently, Lange's focus is on military and geopolitical topics.

Lange's work has been quoted or mentioned in Forbes, The New York Times, Business Insider, USA Today, MSN, Yahoo, The Verge, Vice, The Intelligencer, Quartz, Nasdaq, The Motley Fool, Fox Business, International Business Times, The Street, Seeking Alpha, Barron’s, Benzinga, and many other major publications.

A graduate of Southwestern University in Georgetown, Texas, Lange majored in business with a particular focus on investments. He has previous experience in the banking industry and startups.