Software giant Microsoft Corporation (NASDAQ: MSFT) recently revealed that it will help The Procter & Gamble Company (NYSE: PG) in boosting its digital manufacturing capabilities.
Shares of Microsoft declined marginally to close at $270.11 in Wednesday’s extended trading session.
The partnership will leverage the power of Microsoft Azure to digitize and integrate data from more than 100 P&G manufacturing sites around the world. This will allow P&G employees to take faster decisions and ensure supply chain improvements.
Moreover, from a sustainability perspective, the partnership will involve the use of Microsoft’s machine learning and data storage platforms to improve energy utilization.
Management’s Take
The Chief Commercial Officer of Microsoft, Judson Althoff, said, “We are excited to help P&G accelerate its digital manufacturing platform using Microsoft Azure, AI and IIoT to accommodate volatility in the consumer products industry with innovative, agile solutions that can easily scale based on market conditions. Our partnership will further P&G’s growth and business transformation through digital technology that seamlessly connects people, assets, workflow and business processes that promote resiliency.”
Stock Rating
On June 8, Oppenheimer analyst Timothy Horan reiterated a Buy rating on the stock with a price target of $340, which implies upside potential of 25.7% from current levels.
Overall, the stock has a Strong Buy consensus rating based on 24 Buys and one Hold. MSFT’s average price target of $356.30 implies upside potential of 31.8% from current levels. Shares have gained 6.6% over the past year.
Investors’ Sentiment
TipRanks’ Stock Investors tool shows that top investors currently have a Very Positive stance on MSFT, as 41.5% of the top portfolios tracked by TipRanks increased their exposure to MSFT stock over the past 30 days.
Conclusion
Microsoft’s collaboration with P&G is going to lend more strength to the technology giant’s stock in the near term.
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