Microsoft price target raised to $450 from $415 at Deutsche Bank

Deutsche Bank analyst Brad Zelnick raised the firm’s price target on Microsoft to $450 from $415 and keeps a Buy rating on the shares ahead of its Q2 earnings next week. The firm believes that the company’s earnings will come in toward the high end of prior revenue guidance as Azure optimization activity eases relative to stable embedded expectations and with Windows likely benefiting from stabilizing PC demand during the holiday quarter, the analyst tells investors in a research note. Microsoft screens expensively on both absolute and growth adjusted multiples relative to the “Magnificent 7” names, and as a result, its stock performance will need to be primarily driven by estimate revisions, the firm added.