Franklin Templeton's Clements: Be wary of tech stocks

European technology company earnings are set to bounce back this year but investors should tread carefully, according to Franklin Templeton European Growth fund manager Mike Clements.

Consensus estimates compiled by Société Générale suggest the sector is set to see average earnings growth of 39.1% in 2013 – the highest figure for any European sector. That follows an estimated 38.4% contraction for full-year earnings last year, but Clements (pictured) questioned the attractions of individual stocks within the sector. The manager pointed to Nokia, now struggling to keep up with a market it used to dominate, as evidence of a fast-changing landscape. “Technology companies are a struggle for us, because the barriers to entry are often hard to define. “You have to ...