While the technology sector will be largely quiet this year when it comes to growth opportunities, Apple (NASDAQ:AAPL) will continue to be one of the to invest in, according to a 2013 stock prediction by RBC Capital Markets analyst Amit Daryanani. In fact, among large-cap tech companies, Daryanani only recommends buying Apple and EMC (NYSE:EMC).
Tech Goes Bust?
“We foresee 2013 to be another year of muted growth, but expect demand will be more robust compared to the back half of 2012,” Daryanani wrote in a research note to investors, according to Apple Insider.
The PC industry will once again face the biggest challenge as continue to be the more popular pick. That said, PC sales may possibly rebound in the second half of the year if enterprise customers are forced to upgrade their systems after Microsoft (NASDAQ:MSFT) halts support for the Windows XP .
The news for Apple, though, according to Daryanani, will stay positive through the year.
CHEAT SHEET Analysis: Catalysts for a Stock’s Movement
One of the core components of our CHEAT SHEET investing framework focuses on the factors that could affect a company’s stock. Daryanani’s optimistic predictions will be welcomed by Apple’s worried investors.
While most market watchers expect the iPhone maker’s above-average gross margins to decline in 2013, the RBC analyst disagrees. “From a gross perspective, we believe the company should be in the 40 percent to 42 percent range in fiscal year 2013,” he wrote.
Sales will also see “robust unit growth” to be up 25 percent for a total of 319 million units in this calendar year. According to Daryanani, a key driver adding upside to revenue expectations could be the “release of a new product line, iTV or otherwise, as the company has historically entered a new market on a three-year basis.”
Copyright Wall St Cheat Street All rights reserved.