CES 2017 Will Effectively Be A Car Show: A Look At Key Themes

KeyBanc has put out its key themes ahead of the 2017 CES tradeshow, which is set to take place on Las Vegas between January 5 and 8.

The brokerage, which believes that the CES has predominantly become a car show, is focused on the following three themes:

1. “The convergence of technology on the automotive sector.”
2. “AI for consumer categories.”
3. “Wearables/data collection.”

Stocks To Watch

The analysts at KeyBanc also said the show is a potential positive catalyst for the following stocks:

The analysts believe televisions, wearables and VR have moved to points in the cycle where Best Buy is in a position to gain share.

Delphi Automotive PLC DLPH: Overweight, $85 Price Target

Autonomous driving should be the key focus and the analysts expect positive growth/margin commentary related to about $1 billion active safety new business bookings in 2016.

NVIDIA Corporation NVDA: Sector Weight

NVIDIA will focus on artificial intelligence, self-driving cars, VR and gaming. Further, the analysts will be looking for color around growth drivers for FY 2018.

Fossil Group Inc FOSL: Overweight, $42 PT

KeyBanc said channel checks post-Christmas point to strong holiday sell-through and out of stocks, particularly surrounding the Michael Kors Holdings Ltd KORS smartwatch offering. The analysts would look for the company’s 2018 tech roadmap, especially on the hybrid opportunity.

ON Semiconductor Corp ON: Overweight, $15 PT

The focus will be on incremental sales growth from ADAS image sensors, as well as synergies from the Freescale acquisition.

Under Armour Inc UAA: Sector Weight

“We expect data collection from UA's connected fitness ecosystem and use of this data to be important, as it deemphasizes its branded wearables and focuses on an open platform,” the analysts wrote in a note.