Microsoft started at Buy, MSCI raised to Overweight: 4 big analyst picks
Investing.com — Here is your Pro Recap of the biggest analyst picks you may have missed since yesterday: a Buy initiation at Microsoft, and upgrades at MSCI, Ally Financial, and Radian Group.
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Microsoft started with Buy rating at Truist
Truist Securities initiated coverage on Microsoft (NASDAQ:MSFT) with a Buy rating and a price target of $600.00, as reported in real-time on InvestingPro.
Truist’s analysis indicated that despite Microsoft's stock climbing over 50% in a year, versus the S&P500's 19% rise, there's still considerable room for growth.
The analysts pointed out Microsoft's early execution in the generative AI market and anticipate further growth as their projects evolve. The expectation is for Microsoft to see mid-teen increases in both revenue and FCF, driven by better-than-anticipated results in AI, Azure, and Copilot, potentially leading to continued robust stock performance.
MSCI raised at Morgan Stanley
Morgan Stanley upgraded MSCI (NYSE:MSCI) to Overweight from Equalweight with a price target of $600.00 (from $526.00), citing an attractive entry point and recognizing the company as the "most compelling long-term story" in the information services industry.
Moreover, MSCI is a new Top Pick at Morgan Stanley as the analysts believe that the upside is not fully priced in, highlighting MSCI's growth opportunities and defensive characteristics amid macro uncertainties.
The analysts highlighted that this is an attractive entry point to invest in MSCI, given its appealing balance of growth potential, resilience, and reasonable valuation. MSCI stands out with a strong revenue growth rate of 10% and an impressive 60% EBITDA margin, which supports a mid-teens growth in EPS. “We see significant growth opportunities ahead, and as macro uncertainty persists, we think MSCI presents a compelling value for both growth and defensive qualities,” commented the analysts.
Two more upgrades
Ally Financial (NYSE:ALLY) shares rose around 1% pre-market today after Morgan Stanley upgraded the company to Equalweight from Underweight with a price target of $31.00.
"The Fed no longer hiking rates from here means ALLY's NIM is likely about to bottom, easing pressure on the company's EPS into next year,” commented the analysts.
Keefe, Bruyette & Woods upgraded Radian Group (NYSE:RDN) to Outperform from Market Perform with a price target of $29.00.
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