Benzinga
BofA Reinstates Coverage Of Cloud Stocks, Names Top Picks For 2021
Cloud services is one segment that has gotten a big boost in 2020 due to the pandemic, with many cloud stocks up big year-to-date. On Wednesday, BofA Securities reinstated coverage of five cloud stocks and named its top picks in the group.
The Cloud Analyst: Brad Sills reinstated coverage of the following cloud stocks:
Microsoft Corporation (NASDAQ: MSFT), Buy rating, $256 price target.
Salesforce.com, Inc. (NYSE: CRM), Buy rating, $275 price target.
Workday Inc (NYSE: WDAY), Buy rating, $265 price target.
ServiceNow Inc (NYSE: NOW), Buy rating, $650 price target.
Oracle Corporation (NYSE: ORCL), Neutral rating, $68 price target.
Related Link: 6 Cloud Stocks KeyBanc Likes Right Now
The Cloud Thesis: Sills is anticipating bullish momentum will continue for cloud stocks in 2021 and beyond, but he said some stocks are more compelling values than others.
BofA is projecting that Microsoft can maintain double-digit revenue growth for at least the next three to five years, driven by the continued success of its Azure cloud infrastructure platform, the analyst said.
In addition, Office 265 and a booming Xbox gaming business should generate tailwinds for Microsoft, he said.
Workday is well-positioned to continue to gain market share in the human capital management and financials markets, which are worth a combined $29.7 billion this year, Sills said.
Workday’s massive installed base of around 3,500 cloud customers gives the company a competitive advantage over peers, the analyst said.
While Oracle’s cloud business has been accelerating, he said its cloud transition is still in the early stages, creating risk for investors.
BofA projects that about 69% of Oracle’s fiscal 2021 revenue will come from its zero-growth, legacy on-premise licensing, maintenance and hardware businesses. |
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发表于 2020-12-16 11:22 AM
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