Tech giant Microsoft (NASDAQ: MSFT) jumped on Thursday after the company reported robust fiscal Q1 results with substantial contributions from its Azure cloud unit that left Wall Street analysts impressed.
Pick the best stocks and maximize your portfolio:
- Discover top-rated stocks from highly ranked analysts with Analyst Top Stocks!
- Easily identify outperforming stocks and invest smarter with Top Smart Score Stocks
Citi analyst Tyler Radke noted that Microsoft had “simply delivered” in Q1 and expects the stock to gain modestly. He pointed to stronger-than-anticipated results and positive indicators like commercial bookings and an acceleration in Azure consumption revenue. The analyst is of the opinion that demand trends are stabilizing.
Microsoft’s cloud services revenues, primarily Azure, surged by 29% year-over-year in fiscal Q1, higher than the consensus estimates of a 26% growth. The company’s CFO, Amy Hood, stated on the earnings call that Azure’s revenues, in constant currency terms, are expected “to remain roughly stable compared to Q2.”
Radke is bullish on MSFT with a Buy rating and a price target of $430, implying an upside potential of 26.2% from current levels.
Top-rated Wedbush Securities analyst Daniel Ives highlighted Microsoft’s strong cloud demand and AI opportunities. The analyst has a Buy rating and a price target of $400 on the stock, implying an upside potential of 16.6% from current levels.
What is the Price Target for Microsoft?
Analysts are bullish about MSFT with a Strong Buy consensus rating based on 32 Buys and four Holds. The average MSFT price target of $401.19 implies an upside potential of 17.54% from current levels.
