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Thursday, 7 June 2012 01:46 - - {{hitsCtrl.values.hits}}
Reuters: J.P. Morgan Securities cut its IT spending growth outlook for 2012 as global production trends and spending by China slows amid rising macroeconomic uncertainties in Europe and the United States.
JP Morgan technology analysts, including Tien-tsin Huang, lowered their forecast for global IT spending growth in 2012 to 2.2 percent from 3.8 percent.
They cut their revenue growth estimates for most IT hardware segments, with the exception of tablets, mainly on increasing downside risk from macroeconomic concerns.
Growth for software companies is expected to be lower at 2.5 percent, compared with their previous estimate of 5.5 percent.
“We believe that about 35-40 percent of software growth is at risk as European, U.S. government, and financial services spending slows as the result of economic turmoil,” the analysts wrote in a note to clients.
They now expect the IT services industry to grow at about 1.3 percent in 2012, down from their prior estimate of 3.1 percent.
“As part of our 2012 IT spending growth cut, we identified 23 stock ideas (long and short) to help investors play defense in uncertain times,” the analysts said.
