Value in big software names?

Value has ruled in software lately, and some of the top names have languished during the recent move to near record highs. Software analysts at UBS say they have spoken to clients and investors who have signaled to them that they may be ready to rotate back into the top growth software names as soon as late summer.

Here are the three top names to buy at UBS now.

Adobe Systems Inc. (ADBE) is a top tech stock that was manhandled during the sell-off in growth names that started in mid-March. The stock has still not recovered to where it was trading then, even though it has outperformed the Nasdaq composite. The company announced in the spring the availability of Lightroom mobile, a companion app to Lightroom desktop software, only available as part of Adobe Creative Cloud. The new Lightroom mobile app brings powerful Lightroom tools to the iPad, delivering photography essentials, such as non-destructive processing of files, and utilizing new Smart Preview technologies to free professional-class photo editing from the confines of the desktop. The UBS price target for this top name is $80. The Thomson/First Call price target is $72.81. Adobe closed Monday at $66.93 a share.

Oracle Corp. (ORCL) has sputtered over the past year, but it has finally started to perk up, and like Adobe has outperformed the Nasdaq also. The stock could still be giving investors a prime entry point. The technology giant is making a push into cloud computing, application virtualization and software-defined networking. The latter two should be key areas of revenue growth going forward. The UBS team also believes the company’s new database cycle is still in early innings with the move to 12c. The new separately priced 12c in memory option is coming soon, and they agree with many on Wall Street that the cloud/Fusion apps are improving rapidly. Shareholders are paid a 1.1% dividend. UBS has set a $42 price target, but the consensus target is at $42.51. Note that Oracle closed Monday $42.70.

Red Hat Inc. (RHT) is another high beta technology name that makes it onto the UBS screen for top growth stocks to buy. The company is the world’s leading provider of open source software solutions, using a community-powered approach to reliable and high-performing cloud, Linux, middleware, storage and virtualization technologies. Red Hat also offers support, training and consulting services. This may be a top play for investors as the stock has underperformed the Nasdaq year-to-date — down 8.2% versus the 3.8% gain for the index. The company crushed Wall Street estimates in the most recent earnings cycle, and it could be poised to continue its winning ways for the rest of 2014. The UBS price target is $64, and the consensus target is $64.37. Red Hat closed Monday at $51.43.