The investment firm set prices targets of $315 for Microsoft, indicating potential upside of 36%, the same target for Salesforce, indicating 49% upside, and $413 for Coupa, potentially up 31%.
"We continue to see Microsoft and Salesforce as well positioned to capitalize on digital transformation spending, which we believe will outpace overall IT budgets for the foreseeable future," analyst Kash Rangan said.
Microsoft's strong presence across all layers of the cloud stack makes it well positioned to capitalize on those spending trend, the analyst said.
Goldman sees a path to sustained double-digit revenue growth alongside continued wider profit margins.
Similarly, the firm sees Coupa continuing to benefit from the increasing pace of digital transformation. The firm expects an "accelerating growth story in 2021" to set up the company for positive revenue revisions.
Most important, Goldman said, Coupa "indexes well on our software investing framework with a large total addressable market, high barriers to entry and long-term sustainable growth, ability to innovate and find new growth areas, and efficient growth," Rangan said.
Goldman estimates Coupa's total addressable market at more than $50 billion.
At last check, Microsoft shares were up 0.3% to $232.28, Coupa rose 1.8% to $290.89 and Salesforce gained 1.7% to $214.41.