UBS: These are our top 5 picks for tech stocks

UBS has released its top stock picks for the year.

In a note out Wednesday morning, the Swiss bank says it asked all of its North America analysts their top pick for the next 12 months. It came up with a list of 30 stocks that should outperform over the next year.

For each stock, UBS analysts laid out on one page how they got to their investment thesis, what’s driving the stock, and potential upside or downside movements.

We rounded up UBS top picks in the telecom, media and technology space. Here’s what the bank had to say:


Ticker: GOOG

Current price: $US934

UBS price target: $US1,080

UBS' take: 'With a focus on balancing costs vs. revenue opportunities under CFO Ruth Porat, we believe Alphabet will continue to climb a wall of worry that has persisted over the last few quarters.'

American Tower

Ticker: AMT

Stock price: $US143

UBS price target: $US163

UBS' take: 'After 3 years of declines, we expect U.S. wireless capex to rebound in 2017 to $US30B+ as carriers move to the second phase of 4G deployments to support capacity and peak-speed needs.'


Ticker: AAPL

Current price: $US159

UBS price target: $US180

UBS' take: 'As the iPhone matures investors should start to appreciate the size and loyalty of the installed base, which promotes hardware and services gains.'

Charter Communications

Ticker: CHTR

Current price: $US384

UBS price target: $US450

UBS' take: 'With M&A speculation surrounding Charter in recent months, we walked through the scenarios as reported by the press. We believe all options would be compared to Charter levering up the business itself and buying back its own shares, which we estimate could drive 15%+ appreciation to our current 2020 FCF/sh estimate and increase the FCF/sh CAGR from 30% to 38%.'


Ticker: NFLX

Current price: $US183

UBS price target: $US190

UBS' take: 'We believe Netflix's core competencies in both content and technology will drive a virtuous circle of greater subs and increased viewing time, enabling higher ARPU and revenue, which will fuel content spending to attract even more subscribers, and so on, positioning Netflix to sustain its position as the clear global leader in the emerging online video subscription business.'

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