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Citi analyst Walter Pritchard upgraded Microsoft (MSFT) to Buy from Neutral with a price target of $272, up from $229.

The "relatively slow-moving enterprise IT" is likely to accelerate cloud adoption, which favors Microsoft's Azure over its peers, Pritchard tells investors in a research note.

Further, increased reliance on digital is likely to boost Office 365 premium adoption, adds the analyst. He expects this strength to drive share outperformance in 2021.