Microsoft price target raised to $406 from $400 at Bernstein

Bernstein raised the firm’s price target on Microsoft to $406 from $400 and keeps an Outperform rating on the shares following quarterly results. Microsoft “knocked it out of the park” with many good things to report in its Q1 results, delivering a solid start to FY24. Azure accelerated 1pp and beat guidance by 3pp, the AI tailwind also accelerated and beat guidance by 1pp, all major metrics were beat, margin improvement was solid, and management sounded bullish on prospects for Copilot – all in economic conditions that are not yet showing improvement and are still negatively impacting other software vendors.