Microsoft Analyst Says Q3 Print From 'Favorite AI Superstar' May Boost Bullish Outlook, Sees Azure Raking In Whopping $76B Annual Revenue
Portfolio Pulse from Shanthi Rexaline
Piper Sandler analyst Brent Bracelin reiterated an Overweight rating and a $455 price target for Microsoft Corp. (NASDAQ:MSFT), ahead of its fiscal third-quarter earnings. Bracelin is bullish on Microsoft, citing its potential in AI and expects Azure's revenue growth rate to approach 30%, with an annualized revenue run rate potentially hitting $76 billion. Despite high capex and finance lease costs, the analyst sees robust capex as necessary for AI and cloud adoption. The analyst is neutral on M365 Copilot but expects healthy contract momentum. Microsoft's AI sales, currently at 2%, could grow to 10%+ within 3-5 years.
April 22, 2024 | 8:41 am
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Piper Sandler analyst Brent Bracelin is bullish on Microsoft, citing its AI potential and Azure's expected revenue growth. Maintains an Overweight rating with a $455 price target.
The bullish outlook from Piper Sandler, especially with the emphasis on AI and Azure's growth, could positively influence investor sentiment. The specific mention of Azure's revenue potential and the AI sector's growth prospects highlight significant areas of strength for Microsoft. Given the analyst's positive stance and the high price target, this could lead to increased investor confidence and potentially drive the stock price up in the short term.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100