Goldman Sachs boosts Microsoft confidence amid AI investments
- Numerous Wall Street analysts made significant upgrades and reiterations on various companies on May 20, 2025.
- Goldman Sachs showed increasing confidence in Microsoft, raising its price target due to AI investments.
- Overall, analysts reflect a cautious but optimistic outlook on tech companies amidst competitive pressures.
On May 20, 2025, various analysts on Wall Street made significant calls regarding multiple companies. UBS upgraded Mettler-Toledo to 'buy' from 'neutral', highlighting the resilience and pricing power of the lab instrumentation company. Similarly, Deutsche Bank upgraded MKS to 'buy' from 'hold', citing an attractive entry point for the semicap company. Goldman Sachs expressed increasing confidence in Microsoft, reiterating its 'buy' rating while raising the price target from $480 to $550, reflecting optimism in Microsoft's AI investments. BMO made a noteworthy statement by maintaining its 'outperform' rating on Alphabet, indicating that concerns regarding competition in search capabilities from AI competitors are overblown. Users have reportedly shown higher loyalty and satisfaction toward Google's AI search outcomes, underscoring Alphabet's continuing market strength. This sentiment aligns with Wells Fargo's initiation of SAP as 'overweight', emphasizing the ongoing growth momentum in cloud migration. In the automotive sector, Morgan Stanley reiterated its 'overweight' rating for Tesla, suggesting that market expectations for Tesla's near-term automotive operations may be overly optimistic amidst increasing competition from Chinese manufacturers. Wolfe upgraded LivaNova to 'outperform', predicting growth for the med-tech company. Additional upgrades included Air Lease by Citi and Hewlett Packard Enterprise by Evercore ISI, both companies being perceived as positioned well in their respective markets. The overall performance of these companies will be influenced by their unique market positions, external competition, and overall economic conditions, but analysts remain optimistic about the outlook, reinforcing their ratings and price targets. This trend highlights a cautious yet confident approach from analysts regarding technological advancements and corporate strategies that can potentially enhance company performances and shareholder value in the future.