Jim Cramer -- Goldman Sachs' Upgrade of Microsoft Is 'Smart'

Shares of Microsoft (MSFT) are up more than 1% Thursday after an analyst at Goldman Sachs upgraded the stock to buy from neutral and raised her price target to $68 from $60. 

The analyst, Heather Bellini, is very smart, said TheStreet's Jim Cramer, co-manager of the Action Alerts PLUS portfolio, on CNBC's "Stop Trading" segment. 

The stock hasn't been that strong lately, Cramer said, but he agrees with Bellini that the company's cloud strategies and initiatives should pay off. 

CEO Satya Nadella is being aggressive in the cloud, and he too is very smart, Cramer commented. Nadella is a good leader making the right moves for Microsoft, he added. 

This isn't the old Microsoft, Cramer argued. This company is chasing growth, and when its projects get to scale, it should see an increase in margins from its cloud business, Cramer said. Bellini is looking for those moves too, he concluded. 

At the time of publication, Cramer's Action Alerts PLUS had no position in companies mentioned.

If you liked this article you might like

How To Get a Promotion Using Legendary Former GE Head Jack Welch's Strategies

Microsoft Has Been Reborn Under CEO Satya Nadella

How to Make Your Life Successful Just Like Billionaire Warren Buffett

Hewlett Packard Enterprise Becomes the Latest Tech Titan to Slash Jobs