Talking Numbers

This old tech name is about to break out

This old tech name is about to break out

This year, old is in when it comes to tech, with '90s favorites Microsoft, Hewlett-Packard and Cisco among the market's best performers.

And Thursday, Microsoft shares saw a nice boost after FBR Capital Markets upgraded the company to "outperform" from "market perform," and upped its price target to $49 per share.

In a note, the firm gave three reasons for the upgrade:

  1. Strong confidence in new CEO Satya Nadella's plan for Microsoft's future
  2. Solid cloud growth prospects
  3. Microsoft is taking the necessary steps to ensure Windows successfully transitions to mobile.

Shares of Microsoft are up around 25 percent over the last 12 months, so is it too late to buy this bellwether name?

(Read: Cramer: Don't give up on this tech stock, yet)

Auerbach Grayson's Richard Ross said quite simply that based on the technicals, Microsoft is a "buy."

"You know, old tech like Microsoft has been a real bright spot this year. The stock's up almost 10 percent on a year-to-date basis with the Nasdaq composite up 2.6 percent. That's outstanding relative strength," he said.

Specifically, Ross pointed to a series of bullish technical patterns, including a bullish cup and handle, an ascending triangle (link to wedge tutorial) and relative strength to the broader, as reasons to get in Microsoft. "I think you could buy Microsoft right here and still make some money," Ross added.

But according to Steve Cortes of Veracruz TJM, Microsoft's fundamentals aren't so strong.

(Watch: Tough time to buy: Pro)

"I'm glad Rich mentioned that its old tech because it is old tech, and that's the problem with it right here, "said Cortes. "This is essentially still a PC-driven company in a world that has turned into anything and everything but PCs."

Being a PC-driven company is one of the three reasons Cortes isn't chasing Microsoft. His others include mobile growth and cloud revenue.

Still, Cortes remains a fan of Microsoft, but at a much lower level, around the $30-per-share range. "Up here at these prices, like the band Air Supply, I am all out of love."

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