Zoom Video initiation and Adobe upgrade also among notable calls
Check out today’s top analyst calls from around Wall Street, compiled by The Fly.
‘BRIGHT FUTURE’: Wells Fargo analyst Micahel Turrin initiated coverage of Microsoft (MSFT) with an Overweight rating and $400 price target. Even after becoming one of the largest companies on the planet, Microsoft still has a “bright future ahead,” Turrin told investors in a research note. The company has continued growth opportunities in “huge categories” of IT spend, the ability to further monetize its strong positioning in multiple end markets, and a financial profile that continues to exhibit durable growth and margin expansion, the analyst added. He likes the growth of Azure, Microsoft’s “productivity ubiquity” and its “impressive” margin profile.
ON THE SIDELINES: Goldman Sachs analyst Eric Sheridan reinstated overage of eBay (EBAY) with a Neutral rating and $84 price target. Post third quarter earnings, the analyst still views eBay as a business “facing a few key debates in the years ahead,” namely if its normalized growth will settle in a post-pandemic world and if it can strike a balanced approach to margins against the need to invest against broader platform evolution goals.
‘ADMITTEDLY CHALLENGING’ SETUP: Wells Fargo analyst Michael Turrin initiated coverage of Zoom Video (ZM) with an Equal Weight rating and $275 price target. Despite Zoom achieving broad-based ubiquity and record operating results over the last 18 months, the analyst sees an “admittedly challenging” setup ahead for the shares. As the company laps some exceptional prior results, Turrin thinks the investor discussion will continue to focus in on Zoom’s future growth prospects and what levers are still ahead. While the break-up of Five9 (FIVN) brings the focus back to organic Zoom, the analyst believes it also points to a likely air-pocket in the near-term growth profile. These challenges, coupled with a tough set of comps over the next several quarters, are likely to keep shares more range-bound, Turrin contended.
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