In This Article:
Brad Smith and Madison Mills recap some of this morning's top stories, including D.A. Davidson upgrading Microsoft (MSFT), analysts cutting price targets for Cloudflare (NET), and Wells Fargo's (WFC) upgrade from the team out of RBC Capital Markets.
To watch more expert insights and analysis on the latest market action, check out more Morning Brief here.
First up, Microsoft raised to buy from neutral at DA Davidson. The analyst, Gil Luria, saying the software company has shifted to a more rational capex strategy. He also highlighted that the company has forecast flat sequential capex over the next couple of quarters and lower growth into fiscal 2026, which will help protect margins. Additionally, he calls Microsoft the best positioned out of what he calls the magnificent six companies for a consumer slowdown, since it has the least consumer exposure. Shares are down fractionally.
And taking a look at shares of Cloudflare as the company receives a slew of price target cuts this morning. Still, the company has 16 buys on Wall Street, 16 holds, four neutral ratings, no sells. Mixed outlook for the company amid a slew of price target downgrades, as we mentioned. The stock down 5%.
Plus, Wells Fargo shares. They are lower despite RBC Capital Markets actually upgrading the stock to outperform from sector perform, saying the stock's weakness provides a good entry point. The analyst, Gerard Cassidy, says Wells Fargo has executed on its plan to satisfy all of its regulatory issues while increasing profitability. Shares flat, just barely to the downside right now.
