Macquarie upgrades Microsoft to Outperform after pullback to 'correct' mistake
As previously reported, Macquarie analyst Sarah Hindlian upgraded Microsoft to Outperform from Neutral, taking advantage of the market pullback to "correct" her rating on "a name [she has sorely missed." The company has been differentiating Azure in several critical ways that she did not fully appreciate, such as being both enterprise-friendly and aggressive in layering in unique and incremental services such as Artificial Intelligence, Azure Stack, Azure Sphere, and a broad focus on edge computing, Hindlian tells investors. Additionally, Microsoft continues to drive the business into higher-growth arenas, like public cloud and what she expects to be an emerging successful gaming services platform. While many are worrying that the company's robust earnings trend will not persist as comps get tougher, Hindlian sees ample revenue drivers and raised her price target on Microsoft shares to $121 from $106.