Microsoft upgraded to Outperform, price target raised to $471: 4 big analyst picks

Investing.com — Here is your Pro Recap of the biggest analyst picks you may have missed since yesterday: upgrades at Microsoft, NXP Semiconductors , Analog Devices , and Hertz Global.

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Microsoft upgraded at Exane BNP Paribas

Microsoft (NASDAQ:MSFT) shares rose more than 1% pre-market today after Exane BNP Paribas upgraded the company to Outperform from Neutral with a price target of $471.00, as reported in real-time on InvestingPro.

The company is set to report its Q2/24 earnings on Jan 23. Street estimates stand at $2.29 for EPS and $52.94 billion for revenues.

NXP Semiconductors earns another upgrade

NXP Semiconductors (NASDAQ:NXPI) shares gained more than 1% pre-market today after Wolfe Research upgraded the company to Outperform from Peerperform with a price target of $255.00.

While the analysts expressed some concern about whether the full impact of Auto correction is fully reflected in NXP's numbers, they don't anticipate a major shortfall like Mobileye Global (NASDAQ:MBLY), given that NXP's management has been actively managing channel inventory. Additionally, the analysts noted that NXP's non-mobile businesses have already undergone corrections.

Valuation is compelling such that we expect to be buying weakness, even if another shoe drops in Auto. We believe NXPI's CY25 EPS power is likely to remain intact, irrespective of any incremental cut in Autos. Non-auto sectors were already cut in CY23, and are likely bottoming now.

Earlier this week, Barclays upgraded NXP Semiconductors to Overweight from Equalweight with a price target of $260.00 (from $200.00).

Two more upgrades

Analog Devices (NASDAQ:ADI) shares rose more than 1% pre-market today after Wolfe Research upgraded the company to Outperform from Peerperform with a price target of $225.00.

We’re most confident that ADI has been through the worst of the inventory correction, and think they have among the best growth prospects in analog.

Morgan Stanley upgraded Hertz Global (NASDAQ:HTZ) to Overweight from Equalweight with a price target of $15.00 (from $16.00). As a result, shares jumped more than 6% pre-market today.

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