Microsoft Corp.’s stock climbed 1.1% in premarket trade Thursday, after Stifel Nicolaus upgraded the software giant, citing increased confidence in its commercial business and the belief that its devices and consumer businesses will become increasingly profitable. Analyst Brad Reback raised his rating to buy, after being at hold for two years. He set a stock price target of $55, which is 18% above Wednesday’s closing price of $46.74. “Even with muted expectations for Windows…we believe positive company-wide gross profit dynamics coupled with expense control should enable gross profit dollars to grow faster than operating expenses in coming years,” Reback wrote in a note to clients. He said, “with the Nokia fire largely contained,” he expects Microsoft to raise its dividend by about 15% in fiscal years 2016 and 2017. Microsoft said last month that it was taking a $7.6 billion charge to write down assets associated with its purchase of Nokia Corp.’s handset business. The stock has edged up 0.6% year to date through Wednesday, while the Dow Jones Industrial Average has lost 2.4%.
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