The tech sector has been the apple of many an investors’ eye; and Joel Fishbein, managing director and senior analyst at Lazard Capital Markets, is bullish on enterprise software makers. He shared his top picks with CNBC.
On the large cap side, Fishbein likes Oracle .
“I think Oracle is well-positioned in terms of their product cycle to deliver superior results going into 2010,” he says.
Fishbein is also bullish on Symantec. He thinks security is going to be a hot area and the government needs to protect its critical infrastructure, which bodes well for Symantec’s business.
“Right now we see consolidation amongst the vendors out there. Symantec has been an acquirer and we expect them to outperform in 2010.”
Salesforce.com, a business software company based on cloud computing, is another favorite of Fishbein’s. He says the company has added 30 more percent of customers in the past year when the U.S. saw the worst customer environment.
“The company is accelerating their revenue growth. This is a good cloud computing play,” Fishbein added.
In terms of companies to avoid, Fishbein says some of the application vendors are more at risk because they don’t have a subscription-based model and are not spending new capital on existing areas.
“We are concerned they may be prone to a pullback,” Fishbein says.
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Lazard Capital Markets doesn't own shares of Oracle, Symantec or Salesforce.com. Nor are those companies Lazard's clients.