CMB International Securities analyst Saiyi He maintained a Buy rating on Microsoft (MSFT – Research Report) today and set a price target of $510.30.
Saiyi He has given his Buy rating due to a combination of factors including Microsoft’s strong financial performance and promising growth prospects. The company reported a significant increase in revenue and net profit for the third quarter of fiscal year 2025, surpassing both the firm’s and consensus estimates. This growth was largely driven by the Intelligent Cloud and More Personal Computing segments, with the cloud services, particularly Azure, showing impressive year-over-year growth.
Moreover, the demand for AI-related cloud services continues to outpace the expansion of data center capacity, indicating sustained future growth. The company’s improved execution and operating efficiency have also contributed to the positive outlook. Despite the increased investments in AI infrastructure affecting cloud margins, the overall operating profit margin expanded, supported by gains in other business segments. These factors have led to a slight upward revision in revenue and net profit forecasts, as well as an increase in the target price for Microsoft’s stock.
In another report released yesterday, Loop Capital Markets also maintained a Buy rating on the stock with a $550.00 price target.