J.P. Morgan upgraded Microsoft (MSFT ) to buy from long-term buy.
Analyst Christopher Galvin says the Appeals court ruling confirmed the broadly held assumption that Microsoft's latest round in the courts would yield favorable results, as the court overturned Judge Jackson's stayed breakup remedy order. While the news isn't surprising, the victory holds psychological significant for Microsoft as it rebuilds its image, and will lead to a new trial with limited scope before a different district court judge.
Galvin expects the decision to drive the stock on a short-term basis, and clear the way for operational issues to come to the forefront in investors' minds. He has an $85 target.