This past week marked one of the stronger weeks in the stock market. Many technology stocks also participated in the gains. So much for “sell in May and go away,” and so much for worrying about declining earnings and excessive valuations.
24/7 Wall St. reviews dozens of analyst research reports each morning of the week. This ends up being hundreds of analyst research reports during each week. The goal is to find new investing and trading ideas for our readers. Some of these analyst reports cover stocks to buy, and other reports feature stocks to sell or avoid.
After reviewing these on a sector by sector basis, there were seven stocks where research stood out handily in the technology sector. There were of course other calls, but these stood above the rest.
As a reminder, analysts tend to have more Buy ratings than they do Sell or Hold ratings. Analysts also often have no more known information than any of the more sophisticated investors. And of course, sometimes analysts are just wrong.
These were the seven technology analyst upgrades and initiations seen with big upside targets made during the week ending May 27.
Goldman Sachs raised Infosys Ltd. (NYSE: INFY) to Buy from Neutral on May 26. The upgrade was based on Infosys having an advantage over peers with a talented Indian workforce and cost advantages that will shine ahead. The stock closed at $18.81 before the call, and its shares closed up at $19.48 on Friday. Its consensus analyst price target of $19.97 from before the call went up to $20.37 afterward, and Infosys has a 52-week trading range of $15.30 to $20.47.
On May 24, Microsoft Corp. (NASDAQ: MSFT) was raised to Outperform from Market Perform at Cowen, which sees the sell-off as overdone and expects strong Office 2017 sales. Additionally, the Azure cloud platform is viewed as well. Shares closed at $50.03 before the call, and they were up at $51.35 shortly after the call. Microsoft shares were trading at $52.32 at Friday’s closing bell. The stock has a consensus analyst target of $57.66 and a 52-week range of $39.72 to $56.85.