Ticonderoga gave their outlook for the Networking & IT Hardware, noting Apple (Nasdaq:AAPL), Cisco (Nasdaq:CSCO) and Cogo (Nasdaq:COGO) were their favorites in certain segments.
Ticonderoga said, "Slower Tech Growth in 2011 Will Drive Focus on Secular Trends. Our sixteen tech universe experienced an average stock gain of 21% in 2010, but we don't expect returns will be as easy in 2011. After a sharp rebound last year, we expect slower revenue growth in the tech world in 2011, and the margin expansion story is starting to show its age. Despite slower growth and the risk of reoccurring macro concerns, there are several secular trends that should provide a favorable backdrop for certain tech players.
Apple Is Our Top Pick, Cisco as a Turnaround and Cogo in Small-Cap. Our overall top pick for 2011 is Apple (Buy), as we believe the company's product portfolio remains the best positioned to capitalize on the secular trends in the consumer electronics market, which includes the ramp of the mobile Internet around the world. We believe the iPad will take on a life of its own in 2011 and users will increasingly flock to Mac products, while we expect the iPhone will continue to gain momentum around the world and begin to tap into CDMA networks with carriers such as Verizon and China Telecom. Cisco (Buy) is our favorite turnaround story for investors who can weather the potential for choppy waters in the near term, while our favorite small-cap pick for 2011 is China-based Cogo Group (Buy)."
Apple was trading at $329.39, up $6.83, or 2.12 percent, as of 12:39 PM EST. Cisco was trading at $20.58, up $0.35, or 1.75 percent. Cogo was at $8.92, up $0.07, or 0.79 percent.
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