Which investment themes will be successful within the technology sector and which companies are chosen as Top Tech Picks for 2019? In the annual Nordic Tech report, Redeye’s tech analysts present key market drivers, expectations and a unique company screening.
Gaming and Cybersecurity are two key areas for investors to pay attention to, conclude Redeye’s analysts in the annual Nordic Technology Report for 2019. Both areas are relevant to a big number of Swedish companies. According to Dataspelsbranschen, there were 343 registered businesses in Sweden with a focus on game development in 2017. These companies generated revenues of approximately SEK 15bn during the same year, compared to SEK 3.7bn 2012. Game development is a growth industry - a dozen companies have been around since the nineties, but well over half of all companies have registered in the past five years.
Another hot area is Cybersecurity. The shift to cloud computing, increased network connectivity, regulation and public spending initiatives, and the growing complexity of disruptive cyber-attacks are all drivers supporting a growing need.Enterprises are transforming their security spending strategy, moving away from prevention-only approaches to focus more on detection and response. This is strongly coupled to the leveraged use of Al and big data-driven security solutions to identify security issues before they can be exploited.
- Cybersecurity is only in the beginning of it’s potential. Many new companies with new approaches and technologies are constantly emerging and we will probably see an increase of M&A activity, says Havan Hanna, Tech analyst on Redeye
The report, written by Redeye’s team of tech analysts, also reveals which of the tech companies within the Redeye Universe that are chosen as top picks for 2019.
- Our Top Tech Picks for 2018 averaged a return of 18% and the portfolio rose 11%. For this year we have chosen three qualitative tech companies that are run by exceptional managements, in structural growth markets, and with attractive valuations, says Eddie Palmgren, Tech analyst on Redeye.
Redeye är specialister på innovativa och snabbväxande nordiska företag inom Life Science och Technology. Bolaget har en marknadsledande position och erbjuder tjänster inom aktieanalys, Corporate Finance och Corporate Broking. Analyserna utgår från en värdebaserad investeringsfilosofi och en unik ratingmodell. Redeye grundades år 1999, är ett auktoriserat värdepappersbolag och står under Finansinspektionens tillsyn.
Redeye is the next generation investment banking company, specialized in Life Science and Technology. Clients are innovative and fast-growing companies based in the Nordics but with a global reach. Redeye is a leading provider of Equity Research, Corporate Broking, and Corporate Finance in these sectors. The research is built on a value-based investment philosophy and with a unique Rating model. Redeye was founded in Stockholm 1999 and is regulated by the Swedish Financial Authority (Finansinspektionen).