On Friday, BMO Capital Markets adjusted its outlook on Microsoft Corporation (NASDAQ:MSFT), raising the price target to $500 from the previous $465, while continuing to endorse the stock with an Outperform rating. The revision reflects a positive stance on the company's cloud business, particularly its Azure platform.
The firm's analyst cited recent expert discussions that were bullish on cloud demand as a key reason for the optimistic price target. Microsoft's Azure is expected to report a year-over-year constant currency growth of 31% for the June quarter. Additionally, there is a belief that there could be further growth beyond the current estimates.
The analyst does not anticipate similar upward trends for Microsoft's Personal Computing Business (PBP) in the June quarter. Despite this, the confidence in Microsoft's sustained growth in the cloud sector has led to the decision to increase the price target.
The new price target of $500 suggests BMO Capital Markets sees significant value in Microsoft shares and maintains its view of the stock as a top pick. The endorsement comes amid broader expectations of robust demand in the cloud services industry, where Microsoft is a leading player.
Microsoft's financial performance, particularly in its cloud services, will continue to be monitored by investors as the company strives to meet the growth projections set forth by analysts. The raised price target indicates a belief in the company's potential to outperform in the market.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.