NEW YORK - Analyst from Citi has updated his outlook on Microsoft Corporation (NASDAQ:MSFT), maintaining a Buy rating but ending his positive watch on the tech giant. This decision comes even as shares showed a slight decline in premarket trading to $374.15, though they have experienced a significant 57% surge year-to-date (YTD) after a series of successful months.
Citi's continued confidence in Microsoft is supported by the company's robust first-quarter financials, which were reported on October 24 and exceeded expectations, largely due to the growth of its Azure cloud sector. The introduction of new products has also played a key role in bolstering the company's market position. These releases include Copilot for Office applications and the Azure Maia AI Accelerator chip, which have been met with high demand across various industries.
The sentiment around Microsoft's product pipeline and innovation in generative AI remains strong. Wedbush has echoed this optimism by adjusting its share target to $425, acknowledging the solid anticipation built around Microsoft's new offerings.
Despite the halt of the positive watch, the outlook for Microsoft remains favorable with Radke's price target set at $432, indicating confidence in the company's ongoing innovation and market performance.
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