Goldman wow items Sachs downgrades TomTom to sell

(Reuters) - Goldman Sachs cut its rating on Dutch wow gold navigation equipment and digital map maker TomTom NV to "sell" from "neutral," saying weak European demand and growing consumer shift towards free software on smartphones will hurt earnings.

Best known for its personal navigation devices (PND) used by car wow items and truck drivers, TomTom has struggled for months to overcome slumping demand in PNDs as consumers opt for free or cheap navigation software as well as cooler gadgets like smartphones and tablet computers.

However, Goldman analysts said they expect the agreement with Apple to be only slightly accretive compared with the quickly deteriorating licensing income from Google Inc over the next 18 months.

"We expect Tom Tom's transition from wow items hardware vendor to its software model to continue to be challenging, calling for a shorter valuation outlook ." Goldman said.

The brokerage cut TomTom's price target buy wow gear to 3.20 euros from 3.70 euros. The stock was down 4.5 percent at 3.25 euros on the Amsterdam Stock Exchange.

The brokerage also slashed its price targets on other tech wow gold stocks, including Wolfson Microelectronics Plc , CSR Plc , Kudelski SA , Pace PLC , Alcatel Lucent SA and Nokia Oyj , citing slowing economic growth and persisting uncertainties in Europe.

Goldman said it sees growth opportunities in smartphones, tablets, cloud and product lifecycle management software. It named Sap AG , Dassault Systemes SA , AVEVA Group PLC , Spirent Communications plc and Imagination Technologies Group PLC as its top picks.
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