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Friday’s top analyst recommendations: Microsoft’s price target raised, Lyft receives an upgrade

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Microsoft and Lyft were the focus of analysts’ discussions on Wall Street on Friday, with Oppenheimer raising its price target on Microsoft to $500 due to the increasing adoption of artificial intelligence-related tools. This move by Oppenheimer implies a 17% upside from Thursday’s close. Microsoft shares have seen a 12% increase year to date. According to analyst Timothy Horan, Microsoft’s partnership with OpenAI and its strong enterprise relationships will help the tech giant regain a dominant platform role in a larger AI-driven market. Horan believes that Microsoft’s platform supports on-premise and hybrid cloud operations, making it a leader in data privacy and network effects.

On the other hand, Loop Capital upgraded Lyft to a buy rating, with an optimistic outlook on the rideshare platform’s potential for a successful turnaround. Analyst Rob Sanderson set a $20 price target for Lyft, suggesting a 27.5% upside from Thursday’s close. Sanderson highlighted Lyft’s targets of a 15% compounded growth rate in gross bookings through 2027 and margin expansion of approximately 4% of those bookings as reasons for his bullish stance. He also expressed confidence in Lyft’s new management team’s ability to execute a successful turnaround and achieve strong growth in adjusted EBITDA through 2027.

In other news, Nio reported weaker-than-expected earnings for the first quarter, leading to a nearly 7% decline in U.S. shares of the Chinese electric vehicle maker. Despite this, analysts remain positive on Nio’s outlook. Morgan Stanley’s Tim Hsiao believes that the recent sell-off is overdone and expects Nio’s shares to regain lost ground in the coming days. Bernstein’s Eunice Lee cited robust order intake in May and early June as positive signs for Nio, while Bank of America’s Ming Hsun Lee highlighted Nio’s order exceeding its maximum production capacity and projected margin improvement in the second quarter of 2024.

Overall, analysts continue to monitor and provide insights on various stocks and companies, offering valuable perspectives on their potential performance and growth prospects. With ongoing developments in the tech and transportation sectors, companies like Microsoft, Lyft, and Nio are attracting attention from investors and analysts alike. As Wall Street chatter continues to influence market dynamics, investors and traders should stay informed on the latest analyst calls and updates to make informed investment decisions.

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