(CRM) and Microsoft (MSFT) will leverage cloud-computing prowess to drive growth, says one analyst who called them “top picks” while initiating software sector coverage. Salesforce stock and Microsoft both edged up on Thursday.


Mizuho Securities analyst Gregg Moskowitz also started coverage on Atlassian, ServiceNow and Splunk with buy ratings. He rated LogMeIn (LOGM) and VMware (VMW) as neutral.


Meanwhile, Salesforce stock has been ranked as an IBD Sector Leader.

In a report, Moskowitz called Salesforce “perfectly situated to help its vast customer base manage revenue and process optimization via digital transformation, with its best-in-class cloud platform.”

Microsoft Azure Cloud ‘More Powerful’

Salesforce stock rose 0.5% to close at 160.67 on the stock market today. Microsoft stock ticked up a fraction to 114.59 on Thursday.

Furthermore, Moskowitz is upbeat on Microsoft’s Azure cloud-computing business. “We believe investor concerns about Azure deceleration are overblown and that Azure is becoming more powerful,” he said.

ServiceNow stock advanced 0.5% to 241.59. He called ServiceNow (NOW) “very well-positioned to partner with large enterprises in their digital transformations.”

Atlassian stock climbed 1.8% to 110.48. Atlassian (TEAM) is listed on the IBD 50 roster of fast-growing companies.

Splunk stock gained 1.8% to 126.42. Splunk (SPLK) could be facing competition from Alphabet’s cybersecurity startup.

Follow Reinhardt Krause on Twitter @reinhardtk_tech


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