Notable Upgrades: Microsoft (MSFT), Dynegy (DYN), Red Hat (RHT), Navistar (NAV)

Analysts at Goldman Sachs (GS) are out with a report this morning upgrading shares of Microsoft Corporation (MSFT) with a ‘Neutral’ from ‘Sell’ rating noting valuation multiple most likely won’t come under pressure as the transition to the cloud remains a positive.

On valuation measures, Microsoft Corp. shares are currently priced at 36.47x this year’s forecasted earnings, which makes them expensive compared to the industry’s 8.45x earnings multiple. Ticker has a forward P/E of 17.60 and t-12 price-to-sales ratio of 4.90. EPS for the same period is $1.50.

In the past 52 weeks, shares of Redmond, WA-based software giant have traded between a low of $39.72 and a high of $56.79 and are now at $54.85.

Shares are up 25.09% year-over-year ; up 23.18% year-to-date.

Analysts at Citigroup upgraded their rating on the shares of Dynegy Inc. (DYN). In a research note published on Friday, the firm lifted the name with a ‘Buy’ from ‘Neutral’ rating.

On valuation measures, Dynegy Inc. shares are currently priced at 23.23x this year’s forecasted earnings, compared to the industry’s 12.93x earnings multiple. Ticker has a PEG and forward P/E ratio of (0.12) and 137.38, respectively. Price/Sales for the same period is 0.36 while EPS is $0.47.

Currently there are 11 analysts that rate DYN a ‘Buy’, 2 rate it a ‘Hold’. No analyst rates it a ‘Sell’. DYN has a median Wall Street price target of $29.00 with a high target of $38.00.

Red Hat, Inc. (RHT) was reiterated a ‘Buy’ by Needham analysts on Friday. The broker also raised its price target on the stock to $98 from $86.

RHT is up $2.55 at $81.41 on heavy volume. Midway through trading Friday, 5.26 million shares of Red Hat Inc. have exchanged hands as compared to its average daily volume of 1.49 million shares. The stock has ranged in a price between $78.93-$83.99 after having opened the day at $83.01.

In the past 52 weeks, shares of Raleigh North, Carolina-based company have traded between a low of $62.43 and a high of $83.99. Shares are up 32.58% year-over-year and 14.06% year-to-date.

Navistar International Corporation (NAV) was upgraded to ‘Neutral’ from ‘Underweight’ by JP Morgan (JPM) analysts on Friday.

NAV is currently printing a higher than average trading volume with the issue trading 2.24 million shares, compared to the average volume of 1.83 million. The stock began trading this morning at $8.12 to currently trade 3.01% higher from the prior days close of $7.98. On an intraday basis it has gotten as low as $8.16 and as high as $11.54.

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