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Pro Analysis

These 10 tech stocks will thrive from Trump cutting taxes, Goldman says

President Donald Trump gives a thumbs up on the West Front of the U.S. Capitol on January 20, 2017 in Washington, DC.
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President Donald Trump gives a thumbs up on the West Front of the U.S. Capitol on January 20, 2017 in Washington, DC.

President Donald Trump says he will announce details of his business tax cut plan in coming weeks. In response, Goldman Sachs' technology research team shared a list of companies that will benefit the most from a potential corporate tax rate reduction.

"The Trump administration has signaled a set of wide ranging changes across taxes, trade and regulations. While much is still unclear, in this report we take a preliminary look across our US TMT [technology, media and telecom] coverage to explore the potential impact of current tax and policy proposals," analyst Heather Bellini wrote in a note to clients entitled "Transition to Trump: Implications for TMT" Monday.

The analyst cited how the Republican-led House plan lowers the corporate tax rate to 20 percent from 35 percent, while Trump proposes a reduction to 15 percent. Goldman economists project "the most likely scenario" is a 25 percent tax rate.

To find the best technology stocks under a lower tax rate environment, Goldman searched for companies with market caps over $10 billion and with projected 2017 effective tax rates above 30 percent, according to the firm's analysts.