Barclays on Global Technology Outlook: Selective Approach into 2H11

Barclays on Global Technology Outlook: Selective Approach into 2H11

Barclays analyst said, "The Barclays Capital Global Technology Outlook outlines our top picks and themes for the remainder of 2011. Technology has underperformed most market sectors so far this year (the S&P 500 IT index is down 2.5% while the overall S&P 500 is up 1% YTD). Although macro worries persist around further slowdowns in Europe and government IT spending, we still believe there are investment opportunities in Cloud Computing and the ongoing "Consumerization of IT." Furthermore, we believe that a recovery in Japan is underway and recommend some country-specific stocks from the region. We are enthusiastic about storage and software demand, highlighting EMC (NYSE: EMC), NetApp (Nasdaq: NTAP), and Oracle (Nasdaq: ORCL)."

"We continue to favor exposure to robust smartphone growth through vendors such as HTC as well as semiconductor content suppliers such as Qualcomm (Nasdaq: QCOM), Avago (Nasdaq: AVGO), and MediaTek. While we remain concerned about consumer markets, in general we are sticking with certain share gainers like Apple (Nasdaq: AAPL), Lenovo, Asus, and Hon Hai from Asia. Conversely, the Tech team recommends being underweight other names with consumer exposure like Logitech (Nasdaq: LOGI), Sharp, Olympus, Acer, Compal, Inventec, and Quanta to name a few. In semiconductors, we also prefer Asia ex-Japan fabless names over OSATs (Outsourced Semiconductor Assembly & Test) and foundries."

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