Microsoft Stock Has Further Room To Run, Says Analyst, As Software Giant Remains On Track To Hit $200B Cloud Revenue In 2 Years
Portfolio Pulse from Shanthi Rexaline
Piper Sandler analyst Brent Bracelin has reiterated an Overweight rating on Microsoft (NASDAQ: MSFT) and increased the price target from $465 to $485, suggesting a 10% upside potential. Bracelin expects Microsoft's Cloud revenue to double to $200 billion by fiscal year 2026, driven by AI and data center investments. The analyst also raised his calendar year 2025 earnings per share estimate and P/E multiple due to strong cloud momentum.
July 23, 2024 | 7:16 am
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Piper Sandler analyst Brent Bracelin has reiterated an Overweight rating on Microsoft and increased the price target from $465 to $485, suggesting a 10% upside potential. Bracelin expects Microsoft's Cloud revenue to double to $200 billion by fiscal year 2026, driven by AI and data center investments. The analyst also raised his calendar year 2025 earnings per share estimate and P/E multiple due to strong cloud momentum.
The analyst's positive outlook and increased price target are likely to boost investor confidence in Microsoft's stock. The expected doubling of cloud revenue and strong AI growth contribute to a favorable short-term impact on the stock price.
CONFIDENCE 95
IMPORTANCE 90
RELEVANCE 100