Canada's Softchoice remains top choice for TD Securities as tech stocks lag

Sangoma Technologies

03/01/2022 13:45

** TD Securities says it is lowering the PTs of some U.S.
and Canadian tech stocks in its coverage due to the
underperformance of the tech sector 
    ** Brokerage says since the end of the Q3 earnings season in
mid-November, the tech-heavy Nasdaq  .IXIC  has fallen ~1%
underperforming the S&P 500 index's  .SPX  ~2% rise
    ** In Canada, the S&P/TSX capped info tech index  .TRSPTTTK 
has lost ~8% and the S&P/TSX composite index  .TRGSPTSE  has
dropped ~2%
    ** Brokerage cites the drop to investor concerns about
interest rate hikes, Omicron variant, and continued
underperformance of "pandemic winners"
    ** TD Securities says cloud computing provider Softchoice
Corp  SFTC.TO  remains its top pick while tech sector's lag
represents buying opportunity; says SFTC is trading at >40%
discount compared to co's IT peers
    ** Brokerage says SFTC is well-positioned to benefit from
wave of digital transformation and cloud migration through co's
Project Monarch
        
 Company                                      New PT         Previous PT    Rating
 Absolute Software Corp  ABST.TO   ABST.O     $11            $13            Hold
 Dialogue Health Technologies Inc  CARE.TO    $10.50         $13.50         Buy
 Sangoma Technologies Corp  STC.TO   SANG.O   C$31 ($24.44)  C$37 ($29.17)  Buy
 Softchoice Corp  SFTC.TO                     C$37 ($29.17)  C$40 ($31.54)  Buy
 WELL Health Technologies Corp  WELL.TO       C$9 ($7.10)    C$11 ($8.67)   Buy
    
    ($1 = 1.2683 Canadian dollars)
    
    

 (Reporting by Ruhi Soni in Bengaluru;)
 ((Ruhi.Soni@thomsonreuters.com ; Twitter: https://twitter.com/ruhithere
 ;;))