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.<\/p>\n
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.<\/p>\n
It is important to remember that no single analyst report should be used as the sole basis for any buying or selling decision.<\/p>\n
Piper Sandler\u2019s 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.<\/p>\n
According to Harrison, the company\u2019s \u201cstrong order book\u201d creates the potential for an attractive 2023 revenue and EBITDA outlook. He views Array as a beneficiary of the Inflation Reduction Act\u2019s domestic content requirements, along with the manufacturing credits. At the same time, Harrison also likes the new CEO\u2019s 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.<\/p>\n
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\u2019s move.<\/p>\n
Piper Sandler\u2019s 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.<\/p>\n
After speaking with management, Twigg has increased confidence in the multiyear demand environment for Aspen\u2019s solutions and its ability to reach $1.5 billion annual spending\/annual contract value targets for fiscal 2026. He\u2019s \u201cvery favorable\u201d on the durability of Aspen\u2019s business in the face of macro uncertainty but sees additional upside as contingent on performance above and beyond the current targets.<\/p>\n
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.<\/p>\n
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