{"id":587814,"date":"2022-05-18T17:06:15","date_gmt":"2022-05-18T15:06:15","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=587814"},"modified":"2022-05-18T17:06:15","modified_gmt":"2022-05-18T15:06:15","slug":"bankers-are-bullish-on-these-tech-stocks-after-drop","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/technology\/587814\/bankers-are-bullish-on-these-tech-stocks-after-drop\/","title":{"rendered":"Bankers are bullish on these tech stocks after drop"},"content":{"rendered":"

After this year\u2019s steep declines for US information technology stocks, Jefferies Group LLC strategists have turned bullish on the likes of IBM, Cisco Systems Inc and Microchip Technology Inc.<\/p>\n

The strategists raised their view on the S&P 500 IT Index to bullish in a note on Wednesday, writing that IT stocks are in \u201ca tradeable rally.\u201d<\/p>\n

Their more positive view reflects an easing in the strength of the dollar and credit spreads, and, at least temporarily, in financial conditions. Adding to their conviction, they noted recent improvements in both new orders and the backlog for IT firms.<\/p>\n

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\nWith growth stocks caught in the crosshairs of rising bond yields and fears of an economic slowdown, the S&P 500 Information Technology sector has slumped 21% this year. Price-earnings ratios have fallen to levels last seen in the early days of the pandemic.<\/p>\n

A \u201cdash for cash\u201d as investors discounted some extreme interest-rate scenarios \u201chas been more than reflected in the compression of market multiples,\u201d wrote the Jefferies strategists led by Sean Darby.<\/p>\n

\"\"<\/a><\/p>\n

Separately, Wells Fargo strategists upgraded their \u201cGrowth at Any Price\u201d portfolio that includes stocks like Tesla Inc, Zoom Video Communications Inc and DocuSign Inc to neutral, saying that its bearish thesis has played out.<\/p>\n

\u201cWe have debated internally how\/when to step out of this bearish call,\u201d wrote the Wells Fargo strategists led by Christopher Harvey, \u201cthink that time is now.\u201d<\/p>\n

\u201cWe still do not like \u2018story\u2019 stocks for the long term,\u201d the strategists said, adding that some growth stories appear \u201cbroken.\u201d<\/p>\n

\n

Read: Twitter\u2019s board recommends shareholders vote to approve Musk deal<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

After this year\u2019s steep declines for US information technology stocks, Jefferies Group LLC strategists have turned bullish on the likes of IBM, Cisco Systems Inc and Microchip Technology Inc.<\/p>\n","protected":false},"author":59,"featured_media":274233,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[9878],"tags":[2026,26,753,16932,16934,6118,16936],"class_list":["post-587814","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-technology","tag-cisco-systems","tag-headline","tag-ibm","tag-jefferies-group","tag-microchip-technology","tag-tesla","tag-zoom-video-communications"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/587814","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/59"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=587814"}],"version-history":[{"count":1,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/587814\/revisions"}],"predecessor-version":[{"id":587820,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/587814\/revisions\/587820"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/274233"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=587814"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=587814"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=587814"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}