Microsoft Azure, Office 365, and Gaming To Drive Low Double Digit Growth: Analyst
Portfolio Pulse from Anusuya Lahiri
Bank of America Securities analyst Bradley Sills reiterated a Buy rating on Microsoft Corp (NASDAQ:MSFT) with a price target of $510, citing growth in Azure, Office 365, and gaming. Despite a revenue mix shift towards lower-margin segments, stable margin expansion is expected. The stock is trading at 32 times the calendar year 2026 free cash flow, with potential for multiple expansions.

October 17, 2024 | 6:35 pm
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Bank of America Securities analyst Bradley Sills reiterated a Buy rating on Microsoft with a price target of $510, driven by growth in Azure, Office 365, and gaming. Despite a revenue mix shift towards lower-margin segments, stable margin expansion is expected.
The analyst's reiteration of a Buy rating and a high price target suggests positive sentiment and potential upside for MSFT. The focus on Azure, Office 365, and gaming as growth drivers, along with expected stable margin expansion, supports a positive short-term impact on the stock price.
CONFIDENCE 95
IMPORTANCE 90
RELEVANCE 100