Daily roundup of research and analysis from The Globe and Mail’s market strategist Scott Barlow
Citi research has published a long report highlighting companies they expect to benefit from the work-from-home revolution,
“Examining almost 500 occupations in the US, Professor Carl Frey from the University of Oxford finds that more than 100 of these can be performed remotely. ... Technologies we see as first-order beneficiaries in a remote work environment include those at the vanguard of a plethora of productivity / collaboration offerings … Remote desktop and remote access software providers move from a “nice to have” or a technology for a select group of users - to something that is standard … Video collaboration tools, PC peripherals, underpinning telecom connectivity, datacenters, all are part of the broader ecosystem likely to see an uplift in any increase in Remote Working.”
The list of stock beneficiaries is presented alphabetically – 2U Inc., Alteryx, Anaplan Inc., Avalara Inc., Ceridian, Charter Communications, Citrix Systems, Cloudera Inc., Cogent Communications Holdings, Coupa Software Inc., Crowdstrike Holdings Inc., Docusign, Dover Corp., Dropbox Inc., Emerson Electric Co., Equinix Inc., Forescout Technoogies Inc., Fortinent Inc., Fortive Corp., Guidewire Software, Intuit Inc., Mas Tec, Medallia Inc., Microsoft Corp., MongoDB inc., NortonLifeLock, Okta inc., OpenText, Oracle Corp., Palo Alto Networks, Paycom Software Inc., Paylocity Holding Corp., Ping Identity Corp., Pluralsight Inc., Proofpoint Inc., PTC Inc., Rockwell Automation, SailPoint Technologies, salesforce.com inc., Servicenow Inc., Slack Technologies Inc., Smartsheet, Teradata Corp., VMWare Inc., Workday Inc., Zoom Video communications Inc. and Zscaler.
“@SBarlow_ROB C: investing in the WFH revolution’ – (research excerpt) Twitter
" @SBarlow_ROB C: Companies benefiting from remote work” – (stock list) Twitter
BofA Securities also published an in-depth look at work from home beneficiaries focusing on cloud software, and with a more concentrated list of stocks,
“Our proprietary survey across large enterprises and SMBs suggests that COVID pulled through and accelerated budgets in 2020; with expected software spend growing +12.4% y/y in 2020 post-COVID vs original 2020 plans for growth of +6.5% y/y. Spending on remote work is expected to grow +13.1% in 2020 vs original expectations for growth of +6.2% y/y. Our survey suggests that both pre- and post-COVID top budget priorities were security, public cloud, secure remote access, and networking, while virtual workspaces and workflow planning increased in priority as a result of COVID. As spend normalizes, respondents suggested that there is pent up demand for Microsoft, Amazon, Google, Salesforce.com, Zoom Video, Adobe and Atlassian post-COVID. We identify companies that not only benefit from COVID shifts in budgets and customer demand, but can sustain the benefit LT amid accelerated digital transformations, large addressable markets, superior technology/competitive moat, and strong customer economics. We identify EVBG GOOG, AMZN as vaccines, CRM, COUP, AVLR as vitamins, and MSFT, NOW, TEAM, VMW, TWLO, ZM, RNG, SPLK, DT, and BILL as both a vaccine and vitamin”
“@SBarlow_ROB BoA: Cloud computing winners, and where they see pent up demand” – (research excerpt) Twitter
Also from BofA, economist Carlos Capistran sees a slow recovery for the Canadian economy after an initial post-COVID rebound,
“We believe the recovery will likely be weak after the initial rebound. We expect GDP growth to rebound 6.5% in 2021 so that we do not see the level of GDP going back to its pre-COVID-19 in 2021: an elongated “U-shape” recovery. The fiscal and monetary stimuli have been enormous and that most likely has helped Canada to avoid a deeper economic catastrophe… All-in-all we expect a long period of economic weakness once the rebound from the end of generalized lockdowns is over. This is reflected in our forecasts. For instance, we do see unemployment moving down from its record high 13.7% current level, but only to remain at a still high 8.8% by 4Q”
“@SBarlow_ROB BoA sees slower recovery for Canada” – (research excerpt) Twitter
Diversion: “The Best Music Gear to Learn an Instrument (2020)” – Wired
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