Analyst Upgrades: Zillow Group, Inc., Microsoft Corporation, and GoDaddy Inc.

Analysts upwardly revised their ratings on Zillow Group Inc (NASDAQ:Z), Microsoft Corporation (NASDAQ:MSFT, and Godaddy Inc (NYSE:GDDY)

by Karee Venema

Published on May 13, 2015 at 9:23 AM
Updated on May 13, 2015 at 9:23 AM

Analysts are weighing in on real estate issue Zillow Group Inc (NASDAQ:Z), software specialist Microsoft Corporation (NASDAQ:MSFT), and web domain giant Godaddy Inc (NYSE:GDDY). Here's a quick roundup of today's bullish brokerage notes on Z, MSFT, and GDDY.

  • Z was hit with a mixed bag of brokerage notes, after the company unveiled a first-quarter revenue miss last night. Specifically, Deutsche Bank upped its price target to $96, while Craig-Hallum boosted its target price to $95. Barclays and Cowen, meanwhile, each lowered their price targets to $90. At last check, the shares were up 0.4% in electronic trading -- and were briefly halted in the wake of the results -- after settling last night at $97.98, 7.5% below Z's year-to-date breakeven line. Outside of a rare upgrade earlier this week -- as well as today's pair of price-target hikes -- the brokerage bunch is mostly skewed toward the skeptical side. Roughly 82% of analysts maintain a tepid "hold" recommendation, while the average 12-month price target of $103.36 is within striking distance to current trading levels.

  • Deutsche Bank lifted its outlook on MSFT to "buy" from "hold" and boosted its price target to $55 from $44, explaining "weak PC market sentiment is already reflected in the stock and investor enthusiasm about Azure and Office 365 is just starting to kick in." The new price target represents expected upside of 16.2% to Tuesday's settlement at $47.35 -- and a trek into territory not charted since early 2000. On the sentiment front, option traders have been bracing for some downside. At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), for example, the equity's 50-day put/call volume ratio of 0.67 rests in the 82nd percentile of its annual range. Ahead of the bell, Microsoft Corporation is up 1.4%, and ready to add to its modest 1.9% year-to-date advance.

  • GDDY, meanwhile, is bracing for a 2% drop out of the gate, as traders digest the company's first-quarter earnings report. The mood is much brighter among the brokerage bunch, however, with the stock receiving price-target hikes from Barclays (to $34) and Oppenheimer (to $32) -- both of which represent a move to all-time highs. Since going public on April 1, shares of GDDY have added a minute 2.4%, and closed last night at $26.77. Optimism has been building, however, and at the ISE, CBOE, and PHLX, Godaddy Inc's 10-day call/put volume ratio has jumped to 1.16 from 0.30 since the start of the month.

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