Deutsche Bank’s top sector picks for Q3 ranked by their SA Quant ratings (part 3)

Deutsche Bank this week updated its Fresh Money Quarterly list, spotlighting top investment ideas to hold over the next year in different U.S. sectors.

Below is a list of those picks in the technology sector ranked by their Seeking Alpha Quant ratings, along with Deutsche Bank’s commentary:

1. Amazon (NASDAQ:AMZN) – DB: “Despite 2H economic uncertainties in the US and slower AWS growth relative to peers, we continue to believe Amazon remains one of the best earnings growth stories at scale in the entire market. This is due to its steady double-digit top-line growth backdrop supported by consistent Retail/e-commerce share gains and accelerating AI workload growth at AWS, coupled with stacking e-commerce profitability tailwinds in FY25.” Seeking Alpha Quant rating: Strong Buy 4.85.
2. Confluent (NASDAQ:CFLT) – DB: “Confluent remains the leader in data streaming … After a disappointing cut to full-year guidance in April, largely attributed to macro, the near-term setup appears relatively derisked.” Seeking Alpha Quant rating: Strong Buy 4.54.
3. Meta Platforms (NASDAQ:META) – DB: “Meta’s best-in-class digital ad platform and AI tailwinds continue to support strong revenue growth with the WhatsApp platform now being monetized with ads potentially creating another $1bn+ business. In addition, while the shares have recovered after tariff-driven concerns, particularly around inbound China Ad spend, the stock remains at an attractive valuation level, in our view, given the long-term opportunity to benefit from AI in both advertising performance and AI-driven products and services.” Seeking Alpha Quant rating: Hold 3.47.
4. New York Times (NYSE:NYT) – DB: “The New York Times is benefitting from several near-term fundamental tailwinds, including…tangible progress capturing the AI opportunity, including signing its first major AI licensing agreements with Amazon this quarter … we believe NYT is well positioned to deliver double-digit adj. operating profit growth and increasing shareholder returns this year.” Seeking Alpha Quant rating: Hold 3.39.
5. Cellebrite (NASDAQ:CLBT) – DB: “With the shares underperforming the IGV Software Index YTD and against a secular opportunity that remains unchanged, we see a favorable setup for CLBT’s shares over the next several quarters.” Seeking Alpha Quant rating: Hold 3.27.
6. Equinix (NASDAQ:EQIX) – DB: “Equinix is the most scaled Data Center platform globally, and is (we believe) best positioned to capitalize from AI inference-related tailwinds set to ramp in upcoming years.” Seeking Alpha Quant rating: Hold 3.26.
7. Monolithic Power Systems (NASDAQ:MPWR) – DB: “We continue to believe MPWR has the capability to outgrow its peers in 2025+ driven by its wide array of co-specific drivers (AI diversification, PC/server CPU gains, Comms, Auto, etc.) and presently have a Buy rating and PT of $765.” Seeking Alpha Quant rating: Hold 3.14.
8. EchoStar (NASDAQ:SATS) – DB: “We believe EchoStar is undervalued … We estimate the implied value of EchoStar’s spectrum at the current stock price is only $0.36 per MHz*POP, which is a deep discount to all recent comparables.” Seeking Alpha Quant rating: Hold 3.06.
9. MKS (NASDAQ:MKSI) – DB: “After upgrading…to a Buy rating back in May, we view the company as one of the most compelling Buy opportunities in our coverage. MKSI sits far back in the semiconductor manufacturing supply chain, and we believe it offers an intriguing opportunity to benefit from the early stages of a wafer fab equipment (WFE) spending up-cycle.” Seeking Alpha Quant rating: Hold 2.70.

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