Goldman Sachs says Microsoft’s stock is a buy while Oracle is selling

Cash Rangan, an analyst at Goldman Sachs, began covering a basket of software names late Thursday and assigned buy ratings for Microsoft Corp. stocks. MSFT,
+ 1.92%And the
Workday Inc. WDAY,
+ 1.90%And the
Adobe Systems Inc. ADBE,
+ 0.31%And the
ServiceNow Inc. right Now ,
+ 0.29%And the
Salesforce.com Inc. CRM,
+ 2.12%And the
And Splunk Inc. SPLK,
+ 1.20%.
He is less optimistic about Autodesk Inc.’s prospects. ADSK,
-2.10%
And Oracle Corp. ORCL,
-1.96%
He assigned sale ratings for both names. He wrote that buy-rated Rangan stocks “are more inclined towards high-quality growth perks of reasonable value.” He said companies such as Microsoft, Salesforce, Workday and Splunk appeared poised to take advantage of a potential shift in software spending priorities toward the second half of the year. Ranjan writes that while corporate IT departments spend on “defensive” categories like video conferencing and remote applications, they could soon switch to more “offensive” areas such as public cloud, human capital management, and financial tools. As for the names classified for sale, Ranjan is concerned about “secular pressure” for middleware businesses from Oracle and the health of Autodesk’s customer base, especially with regard to commercial construction companies after the pandemic ends.

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