Analytics, Cloud Services & Software

Dear Readers,

Welcome to our second Initiating Coverage Report. This report was constructed to offer an introduction into the Analytics, Cloud Services and Software industry with a detailed analysis of major players including Oracle, IBM, Tableau, Splunk, MicroStrategy, Microsoft, Amazon, Alphabet, CA and HP. 

Within this report our favourite pick has been Microsoft (MSFT).  According to our comparable analysis MSFT is trading at a premium, however we believe that there are intrinsic factors which offer room for further growth. We believe that Microsoft’s transition to the cloud will lead to a significant increase in recurring subscription revenue from Azure and Office 365, leading to double-digit EPS and FCF growth regardless of headwinds coming from a declining PC market. Although many investors have already started to turn more positive on MSFT’s cloud initiatives, we believe the full multi-year impact of Office 365 and Azure combined with the company's increased focus of operational efficiency is not properly reflected into Microsoft's stock price. Stay tuned as we take in an depth look at Microsoft in the coming weeks.

Thank you,

Anwar Khan

Managing Director,  Technology Media & Telecommunications

Semiconductors

Dear Readers,

Welcome to our first Initiating Coverage Report. This report was constructed to offer an introduction into the Semiconductor Industry with a detailed analysis of major competitors. In particular, we took a detailed look at major semiconductor manufacturers including Intel, Qualcomm, ARM Holdings, NVIDIA, Advanced Micro Devices and Texas Instruments. Industry revenue is projected to grow at roughly 1.7% annualized for the next 5yrs offering great opportunity with the adoption of VR, IoT and wearable technology. That being said, fierce international competition still forms a competitive landscape offering multiple firms huge growth prospects in emerging markets, whereas corresponding developed markets converge in smartphone and PC sales. Within this report our favourite pick has been Intel (INTC), offering a great buy at a discount valuation (using comparables) and with a strong foundation to extend its outreach to international buyers for semiconductors, microchips and processors. Stay tuned in the coming weeks where we will do an in depth pitch on Intel.

Thank you,

Anwar Khan & Waseem Manan