UBS likes Big Tech including Microsoft, Adobe, and Oracle (MSFT, ADBE, ORCL)

UBS is going to bat for some big healthy tech names, the three that caught the Masters attention are Microsoft (NASDAQ:MSFT), Adobe (NASDAQ:ADBE), and Oracle Corp. (NASDAQ:ORCL).  All three of these bad boys are trading less than $1 away from their 52-week highs, and Wall Street is saying they can go even higher.

UBS analyst Brent Thill yesterday set some hefty Buy ratings and price targets on : Microsoft (MSFT), Adobe (ADBE), and Oracle (ORCL) .  If you bought shares today the ROI you could score if UBS is correct is more than 15% on each stock alone, its huge.

Eric Savitz commented that UBS' basic thesis is that IT spending is stabilizing in the 2009 second half, with improvement ahead in 2010. He sees PC and server sales up 10% or more next year, with software demand getting a lift from a variety of new product cycles, in particular Microsoft  Windows 7 and Adobe Creative Suite 5. Thill contends that despite a 41% rally in the group year to date, there is upside left in the stocks.

Tack on M&A activity in the sector in 2010 to help buoy the shares, again, huuuuge.

Speaking of huge target price increases, how about either listening to Paris Hilton explain using the word 'huge' or smashing your face with rocks?  We'll let you decide.

The detail on the price target increases:

MSFT: $34 price target. He’s bullish on the company’s new product cycles, including Windows 7, Windows Server and Office.

ADBE: $43 target. He’s bullish on CS5 and a recovery in ad spending.

ORCL: $27 target. Thill considers the stock a value play and relative laggard; expects clouds to lift once Sun deal closes.

SOURCE: http://blogs.barrons.com/techtraderdaily/2009/11/13/enterprise-software-ubs-picks-recovery-plays/?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed:+barrons/techtraderdaily/feed+(BARRONS.com+Blog:+Tech+Trader+Daily)