Microsoft’s stock performance has lagged behind its Big Tech peers recently, but one analyst believes the software giant is poised to take the lead.
D.A. Davidson analyst Gil Luria upgraded Microsoft (MSFT) to a buy rating from neutral on Thursday, raising the price target to $450 from $425. According to Luria, Microsoft’s strategic focus on artificial intelligence and disciplined capital expenditure positions the company attractively.
Luria highlighted Microsoft’s approach to artificial intelligence investments as a key factor. He believes the company is becoming more rational with its spending in this area. Furthermore, Luria suggests Microsoft is better equipped to navigate a potential slowdown in consumer spending compared to its competitors, thanks to its stronger presence in the business sector.
