Microsoft may perhaps not be immune to a recession, but the company’s sturdy product or service giving will make it a properly-insulated competitor even for the duration of complicated times, Raymond James claimed. “Microsoft’s prolonged track record and breadth of product supplying (normally which includes discounts for multi-products commitments) make them a competitor for a broader assortment of business software package RFPs than any competitor,” wrote analyst Andrew Marok in a observe to clients Thursday. “Its common brand recognition helps make the corporation a commencing point for software package discussions, with rivals usually acquiring to apparent a substantial bar in conditions of incremental abilities to defeat the familiarity and convenience of the Microsoft model title.” Marok resumed coverage of the technological know-how huge with an outperform score, noting that Microsoft retains a potent place in flourishing marketplaces these kinds of as gaming and digital marketing. A long time of knowledge and solid manufacturer recognition also put the corporation in a far better posture to consider share even in a downturn, he included. Marok cited the latest knowledge from Gartner suggesting that a potent quantity of main investment officers strategy to up IT spending going forward. “That mixed with the require for elevated efficiency in a downturn offers us elevated self esteem that Microsoft can weather opportunity storms,” he wrote. Shares of Microsoft have sold off sharply this year as marketplaces grapple with rate hikes from the Federal Reserve and fears of an impending recession. The stock has plummeted extra than 29% in 2022 but could rally another 26% centered on the firm’s $300 rate concentrate on. — CNBC’s Michael Bloom contributed reporting
