Piper Jaffray Reiterates Overweight on Microsoft (MSFT) Following GitHub Acquisition

Piper Jaffray reiterated an Overweight rating and $115.00 price target on Microsoft (NASDAQ: MSFT) following the company's announced acquisition of GitHub in an all stock $7.5B transaction. Analyst Alex Zukin believes that this deal is extremely strategic for Microsoft in that it positions them favorably in the workflow for creating the next generation of applications.

By acquiring GitHub, Microsoft takes possession of a "killer app" with the greatest degree of stickiness, best competitive positioning and most enterprise relevance. Over time Microsoft could expand GitHub to become the "Creative Cloud" for developers and leverage its massive distribution and go-to-market channel to bundle Azure, GitHub, Teams and even LinkedIn as a compelling value proposition for enterprise customers.

For an analyst ratings summary and ratings history on Microsoft click here. For more ratings news on Microsoft click here.

Shares of Microsoft closed at $101.67 yesterday.

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