Microsoft's Potential In Gaming Business Unveiled, Analyst Sees Durable Growth
Portfolio Pulse from Nabaparna Bhattacharya
BMO Capital Markets analyst Keith Bachman reiterated an Outperform rating on Microsoft Corporation (NASDAQ:MSFT), raising the price target to $465 from $455, citing durable growth in gaming and potential in AI. Despite gaming's inherent volatility, Microsoft's position in the market, especially with Activision Blizzard's titles, supports above-market growth rates in gaming revenues. However, the FY25 Gaming revenue growth estimate was lowered to 10% from 13%, while the FY25 Windows revenue growth estimate was raised to 7%. MSFT shares dropped 1.59% to $420.98.
April 12, 2024 | 5:51 pm
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POSITIVE IMPACT
Microsoft's price target was raised to $465 by BMO Capital Markets, with a positive outlook on gaming and AI. The adjustment in FY25 gaming and Windows revenue growth estimates reflects nuanced growth expectations.
The increase in Microsoft's price target by BMO Capital Markets reflects a strong confidence in the company's growth trajectory, especially in gaming and AI. The detailed analysis and adjustments in revenue growth estimates indicate a deep understanding of Microsoft's market position and potential. The short-term price drop may not significantly impact the long-term growth perspective, making this news likely to have a positive impact on investor sentiment.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100