Analyst Keith Weiss from Morgan Stanley reiterated a Buy rating on Microsoft and increased the price target to $625.00 from $582.00.
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Keith Weiss has given his Buy rating due to a combination of factors that highlight Microsoft’s strong performance and potential for sustained growth. The company’s recent results demonstrated significant strength across various business units, with notable acceleration in Azure’s growth and impressive increases in commercial bookings and remaining performance obligations. Additionally, Microsoft’s optimistic guidance suggests improvements not only in revenue but also in margins and earnings per share.
Despite these positive indicators, Microsoft’s stock has not seen a corresponding increase, leading to several debates about its future prospects. Weiss addresses concerns regarding the evolving relationship with OpenAI, the sustainability of Azure’s growth, and the potential impact of agentic computing on Microsoft’s productivity applications. He believes that Microsoft’s ability to overcome these challenges, along with a broadening array of growth drivers, supports a durable high-teens total return profile, making the stock an attractive investment at its current valuation.
Weiss covers the Technology sector, focusing on stocks such as Microsoft, Intuit, and Adobe. According to TipRanks, Weiss has an average return of 13.1% and a 64.30% success rate on recommended stocks.
In another report released on September 24, Wells Fargo also maintained a Buy rating on the stock with a $650.00 price target.