2 tech stocks that could grow double digits (according to Wells Fargo)

There’s still room for upside: 2 tech stocks can still grow double digits (according to Wells Fargo). Experts at the investment bank have set an ambitious target for the S&P 500 by the end of the year, at 5,535 points (+9%), despite a context of economic and geopolitical uncertainty.

To aim for higher returns, Wells Fargo suggests monitoring companies with a solid technological base, with “strong buy” ratings and long-term growth potential, as they are believed to be capable of providing significant returns over the long term.

What are the most promising stocks? Among the technology sector stocks with double-digit growth potential are those operating in the AI and cloud services sectors.

Through careful analysis and data evaluation, Wells Fargo has identified these stocks as the most promising in the current environment. Let’s see in detail which titles these are.

1. GitLab (GTLB)

GitLab daily graph

Source: TradingView

GitLab is among Wells Fargo’s favorite stocks for a variety of reasons. Its open-source platform for DevSecOps offers a specialized solution to improve software development, enabling users to achieve fast and efficient results. The open-source business model allows everyone to contribute to its development, fueling the growth and innovation of the platform.

GitLab has begun integrating artificial intelligence (AI) into its platform, leveraging generative technology to solve urgent customer needs and improve the overall experience. Partnering with Google to use generative AI within its cloud underlines the company’s commitment to customer security and privacy. Additionally, the acquisition of Oxeye further expands GitLab’s capabilities in cloud-native security and risk management.

GitLab target price

Source: TipRanks

Despite the decline in recent sessions (around -7%), Wells Fargo remains optimistic about GitLab’s growth potential. With an “Overweight” rating and a price target of $70 (implying an upside of 30% from its current value), the investment prospects in the stock appear promising.

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2. Monday.com (MNDY)

Monday.com daily graph

Source: TradingView

Wells Fargo included Monday.com in its list of most promising stocks with double-digit growth potential.

Monday.com is a cloud software company that offers a wide range of work management products, including office tools, project management, CRM, and marketing and sales operations.

These tools, offered on a cloud platform, are accessible to subscribers via a software-as-a-service model. The flexibility of the platform allows customers to easily adapt work management systems to their business needs, making it attractive to a wide range of customers, including big names like Coca-Cola and Uber.

Monday.com has consolidated its presence in the market with a constantly expanding customer base, which includes over 225,000 companies worldwide. The numbers speak for themselves, with more than 2,000 customers generating annual recurring revenue in excess of $50,000 each, the company reported a strong increase in revenue in the most recent quarter of $202.6 million, exceeding analysts’ expectations.

Monday.com target price

Source: TipRanks

Wells Fargo believes Monday.com has strong growth potential and identifies strategies that could help the company gain significant market share in the work management industry. These strategies include expanding into the enterprise sector, increasing product offerings to drive cross-selling, using a partner network to increase visibility and develop strategic relationships, as well as possible pricing adjustments. The bank then set a price target of $260, predicting an increase in the value of the shares by 41% over the next 12 months.

|DISCLAIMER
The information and considerations in this article should not be used as the sole or primary basis for making investment decisions. The reader maintains full freedom in his own investment choices and full responsibility in making them, since he alone knows his risk propensity and his time horizon. The information contained in the article is provided for informational purposes only and its disclosure does not constitute and should not be considered an offer or solicitation to the public for savings.| Original article published on Money.it Italy 2024-04-21 22:01:00. Original title: 2 azioni tech che possono ancora crescere a doppia cifra (secondo Wells Fargo)