Microsoft earns upgrade on GenAI prospects: 5 big analyst picks

investing.com:

By Davit Kirakosyan

Here is your Pro Recap of the biggest analyst picks you may have missed since yesterday: upgrades at Microsoft, DraftKings, SiteOne Landscape Supply, Wingstop, and CarMax.

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Guggenheim upgraded Microsoft (NASDAQ:MSFT) to Neutral from Sell, as reported in real-time on InvestingPro. Following this upgrade, there are no more sell-side analysts that rate Microsoft with a Sell or equivalent rating.

Guggenheim admitted they were “dead wrong” to recommend Microsoft as Sell. “The Generative AI narrative is too positive a force to contend with, even though the troubling dynamics we thought might develop, did,” mentioned in a client note.

And like every other person on the planet, we’ve come to expect that the GenAI “narrative” will become more than just a story, though we still question how much monetization will be realized and over what timeframe.

DraftKings (NASDAQ:DKNG) shares rose more than 3% pre-market today after JPMorgan upgraded the company to Overweight from Neutral and raised its price target to $37.00 from $26.00.

The upgrade is based on the recent underperformance of the company’s shares, despite the sector's attractiveness and strong growth prospects in existing and new markets. Additionally, the firm noted that DraftKings' efficient cost control measures, combined with its competitive strengths like product, scale, and brand recognition, position the company well against emerging competitors such as PENN Entertainment's (NASDAQ:PENN) ESPNBet and Fanatics.

UBS upgraded Siteone Landscape Supply (NYSE:SITE) to Buy from Neutral and raised its price target to $200.00 from $145.00.

The rationale behind the upgrade