UBS Names Top 10 Stock Picks in US Tech, Media, and Telecom

UBS has released its list of top 10 high-conviction stock picks across the U.S. technology, media, and telecommunications (TMT) sectors. The investment bank's selections focus on companies positioned for significant growth, driven by key themes such as artificial intelligence capabilities, infrastructure expansion, and increasing market share.

Key Themes and Valuations

According to the bank's analysis, the selected companies span ten different sub-sectors within the broader TMT landscape. UBS's price targets, derived from various valuation methodologies and forward earnings estimates, suggest potential upsides ranging from 16% to 76% from current levels.

The core thesis behind the selections centers on durable, long-term growth drivers. UBS analysts highlighted companies benefiting from trends like the outsourcing of financial services, the expansion of 5G and fiber networks, and the transformative impact of AI on both enterprise and consumer applications.

Ad

UBS's Top TMT Picks

Here are the ten companies highlighted by UBS, along with the bank's price target and investment rationale:

• SS&C Technologies (SSNC): The top pick in business services. UBS sees upside from growing demand for outsourced fund administration and AI-driven offerings. The price target is $101, implying 24% upside, based on a 12.8x multiple on 2028 estimated EPS.
• AT&T (T): The top pick in telecom services. Growth in wireless and fiber subscribers is expected to drive accelerated EBITDA and free cash flow. The price target is $31, implying 16% upside, based on a 7x multiple on 2027/2028 estimated EBITDA.
• EchoStar (ECHO): The top pick in communications infrastructure. UBS notes the stock trades at a significant discount to its net asset value (NAV). The price target is $150, implying over 60% upside, based on a sum-of-the-parts valuation.
• Amazon (AMZN): The top pick among large-cap internet stocks. The bank's forecasts for AWS revenue growth and operating margins are above consensus. The price target is $318, implying 28% upside, based on a 30x price-to-free-cash-flow multiple.
• Pinterest (PINS): The top pick among small- and mid-cap internet stocks. UBS highlights a new phase of product-driven growth and AI investments. The price target is $33, implying 76% upside, based on a 10x EV/Adjusted EBITDA multiple.
• TD SYNNEX (SNX): The top pick in IT hardware. The firm is positioned to benefit from an expected 30% annual increase in data center capital expenditures. The price target is $352, implying 34% upside, based on a 16x P/E multiple.
• Spotify (SPOT): The top pick in media. UBS anticipates sustained premium subscriber growth and expanding operating margins. The price target is $690, based on a 25x EV/EBITDA multiple on 2027-2028 estimates.
• Mastercard (MA): The top pick among large-cap payment stocks. The company offers balanced exposure to consumer spending and growth from value-added services. The price target is $670, implying 17% upside.
• Global-e Online (GLBE): The top pick among small- and mid-cap payment stocks. The company is in the early stages of penetrating a $1.1 trillion total addressable market. The price target is $54, implying 48% upside.
• Texas Instruments (TXN): The top pick in semiconductors. A counter-cyclical capital expenditure strategy is expected to drive market share gains and accelerate free cash flow growth. The price target is $380, based on a 24x EV/FCF multiple on the bank's above-consensus 2028 estimates.