Analyst Bradley Sills of Bank of America Securities reiterated a Buy rating on Microsoft (MSFT – Research Report), boosting the price target to $515.00.
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Bradley Sills has given his Buy rating due to a combination of factors including Microsoft’s robust performance in its cloud and AI sectors. The company’s Azure platform showed impressive growth, surpassing expectations with a 35% increase, largely driven by successful cloud migration deals and contributions from its partnership with OpenAI. This strong performance in Azure alleviates concerns about the stability of their collaboration with OpenAI.
Additionally, Microsoft’s Office business continues to perform well, with revenue growth at the high end of expectations and promising prospects for future growth driven by the adoption of AI tools like Copilot. Despite a slight dip in capital expenditures in the third quarter, this is seen as a timing issue, and future growth is expected to be supported by continued investment. With these factors in mind, Sills has raised the price objective for Microsoft to $515, reflecting confidence in the company’s ability to maintain and accelerate growth.
In another report released today, Jefferies also maintained a Buy rating on the stock with a $550.00 price target.
MSFT’s price has also changed slightly for the past six months – from $432.530 to $395.260, which is a -8.62% drop .