Top telecom, media, and tech stocks to own: analysts

UBS analysts have identified their most compelling 'Buy'-rated TMT investment ideas, highlighting NIQ Global Intelligence for its underappreciated growth and efficiency, and Walt Disney Co for its Parks division driving an expected 17% EPS CAGR through FY27. American Tower Corp is noted for its attractive multi-year low valuation and potential benefits from increased carrier activity, while Amazon.com Inc is their top large-cap internet pick due to broad growth investments. AppLovin Corp is favored in the small/mid-cap internet space, with a potential 27% upside to its $810 price target from Axon 2.0 improvements, and Mastercard Inc is their top payments choice, offering diversified exposure and robust growth in value-added services.

Analysis

In a recent client note, UBS analysts outlined their top 'Buy'-rated investment ideas across the TMT sectors, presenting distinct theses for each company. For NIQ Global Intelligence (NIQ), the firm highlights that the market is underappreciating the company's growth potential and efficiency impacts, with analysts forecasting improved adjusted EBITDA margins. The investment case for Walt Disney (DIS) is anchored by its Parks division, which is expected to be a primary value driver supporting a projected ~17% compound annual growth rate (CAGR) in earnings per share (EPS) through fiscal 2027. American Tower Corp (AMT) is presented as a compelling value play, with its stock trading at multi-year low valuations while being positioned to benefit from rising US carrier activity and international growth. Among large-cap internet stocks, Amazon.com Inc (AMZN) is the top pick, cited for its significant growth potential fueled by investments in e-commerce, cloud, advertising, and satellites. In the small to mid-cap segment, AppLovin Corp (APP) is favored, with an $810 price target representing a 27% potential return based on the belief that its Axon 2.0 platform enhancements will drive performance. Lastly, Mastercard Inc (MA) is the preferred name in payments, noted for its diversified exposure, robust growth in value-added services, strong profitability, competitive moats, and EPS resilience.

Key Decisions for Investors

• Investors seeking value-oriented TMT exposure should consider American Tower Corp (AMT), as its multi-year low valuation presents an attractive entry point ahead of expected catalysts from carrier activity.
• For core growth portfolios, evaluate large-caps like Walt Disney (DIS) for its strong EPS growth outlook of ~17% CAGR and Amazon (AMZN) for its diversified investments across high-growth segments.
• Consider AppLovin Corp (APP) for tactical, high-growth potential in the small/mid-cap space, but closely monitor the execution of its Axon 2.0 platform initiatives, which are central to achieving the forecasted 27% upside.
• For a quality-focused position in the payments sector, Mastercard (MA) offers a compelling combination of strong profitability, competitive moats, and resilient earnings, providing a more defensive growth profile.