Canaccord Genuity on Technology/Enterprise Software: (ORCL, CRM, ADSK, NUAN, AZPN, DWRE, ET, TYPE, CTCT)

Canaccord Genuity on Technology/Enterprise Software:

Analyst, Richard Davis, said, "We are reasonably constructive on the near-term outlook for software as fundamentals continue to be solid. Remember that that vast majority of new software companies are frankly tiny in comparison to the money spent on legacy systems. Indeed, we estimate that the total revenues of the 1,000 top cloud software companies totals $20-25 billion, which is still only 60% the size of just Oracle’s (Nasdaq: ORCL) annual revenues. Therefore, macro tends to be less of an issue for these fast-growing minnows."

"Stick with high visibility franchises. In large cap, we’re still constructive on salesforce.com (NYSE: CRM) and Autodesk (Nasdaq: ADSK). In mid- and small-cap GARP we like Nuance Communication (Nasdaq: NUAN) and Aspen Tech (Nasdaq: AZPN). In small cap growth we like Demandware (Nasdaq: DWRE) and ExactTarget (NYSE: ET), in small-cap value Monotype Imaging (Nasdaq: TYPE), and finally for a more speculative/controversial small-cap, we’d look at Constant Contact (Nasdaq: CTCT)."

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