Analyst Mark Moerdler of Bernstein maintained a Buy rating on Microsoft, boosting the price target to $645.00.
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Mark Moerdler has given his Buy rating due to a combination of factors that highlight Microsoft’s strong performance and future potential. The company reported a robust first quarter, surpassing consensus expectations, with Azure’s growth outpacing guidance by 2%. This success is attributed to a strong demand that has led to capacity constraints, indicating potential for even greater growth as additional capacity becomes available.
Furthermore, Microsoft’s strategic positioning in the AI sector, with a diversified application base and significant contracts such as the one with OpenAI, provides a solid foundation for sustained growth. The company’s ability to maintain stable GAAP margins in the mid-40s and offer downside protection against potential AI market volatility further strengthens its investment appeal. Consequently, Moerdler recommends buying into any market weakness, emphasizing that Microsoft is a valuable addition to any investor’s portfolio.
In another report released today, Oppenheimer also maintained a Buy rating on the stock with a $630.00 price target.
Based on the recent corporate insider activity of 75 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of MSFT in relation to earlier this year.