What's In Store For Microsoft In Q4? Analyst Sees Azure Strength, Double-Digit Revenue Growth Outlook
Portfolio Pulse from Nabaparna Bhattacharya
BofA Securities analyst Brad Sills maintains a Buy rating on Microsoft (NASDAQ:MSFT) and raises the price target to $510. Sills sees a 1% upside to Q4 revenue estimates due to Azure strength, Office E3/E5 premium mix, and early traction with Microsoft Copilot. The analyst also projects a $100 million upside to the PBP segment revenue estimate and forecasts double-digit revenue growth with a slight margin decline due to increased capex.
July 17, 2024 | 6:04 pm
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BofA Securities analyst Brad Sills maintains a Buy rating on Microsoft and raises the price target to $510. Sills sees a 1% upside to Q4 revenue estimates due to Azure strength, Office E3/E5 premium mix, and early traction with Microsoft Copilot. The analyst also projects a $100 million upside to the PBP segment revenue estimate and forecasts double-digit revenue growth with a slight margin decline due to increased capex.
The analyst's positive outlook and increased price target are likely to boost investor confidence in Microsoft. The projected revenue growth driven by Azure and Office, along with early traction with Microsoft Copilot, are strong indicators of the company's performance. However, the slight margin decline due to increased capex may temper some of the enthusiasm.
CONFIDENCE 95
IMPORTANCE 90
RELEVANCE 100