Microsoft might not be immune to a economic downturn, but the firm’s solid product or service featuring can make it a perfectly-insulated competitor even all through tough situations, Raymond James stated. “Microsoft’s long keep track of history and breadth of solution supplying (normally like reductions for multi-solution commitments) make them a competitor for a broader selection of business software package RFPs than any competitor,” wrote analyst Andrew Marok in a note to clientele Thursday. “Its universal model recognition makes the company a beginning place for software program conversations, with competition often owning to clear a large bar in phrases of incremental capabilities to get over the familiarity and comfort and ease of the Microsoft model identify.” Marok resumed protection of the technological know-how giant with an outperform rating, noting that Microsoft retains a robust position in flourishing marketplaces these types of as gaming and electronic promotion. Several years of expertise and strong brand recognition also set the corporation in a improved position to take share even in a downturn, he additional. Marok cited latest details from Gartner suggesting that a potent quantity of chief financial investment officers approach to up IT investing heading forward. “That mixed with the need for elevated efficiency in a downturn gives us increased self-confidence that Microsoft can temperature likely storms,” he wrote. Shares of Microsoft have sold off sharply this calendar year as marketplaces grapple with rate hikes from the Federal Reserve and fears of an impending economic downturn. The inventory has plummeted far more than 29% in 2022 but could rally an additional 26% based on the firm’s $300 price tag target. — CNBC’s Michael Bloom contributed reporting
