On Nov 01, major Wall Street analysts update their ratings for $Microsoft (MSFT.US)$, with price targets ranging from $465 to $550.
Morgan Stanley analyst Keith Weiss maintains with a buy rating, and adjusts the target price from $506 to $548.
J.P. Morgan analyst Mark Murphy maintains with a buy rating, and adjusts the target price from $470 to $465.
BofA Securities analyst Bradley Sills maintains with a buy rating, and maintains the target price at $510.
Citi analyst Tyler Radke maintains with a buy rating, and maintains the target price at $497.
Barclays analyst Raimo Lenschow maintains with a buy rating, and maintains the target price at $475.
Furthermore, according to the comprehensive report, the opinions of $Microsoft (MSFT.US)$'s main analysts recently are as follows:
Microsoft's recent quarterly results did not meet expectations, yet the outlook for Azure's performance by 2025 remains positive, maintaining a constructive stance on the company's prospects.
The firm voiced no concerns regarding Microsoft's Q1 outcomes, labeling them as 'broadly stable-good.' The expectation for Q2's total revenue was set at achievable levels, yet Microsoft's guidance fell short, prompting a decline in share prices after hours. The most significant shortfall in guidance was noted within More Personal Computing (MPC), yet the firm considers MPC's impact as secondary to the core thesis of Microsoft due to the greater importance of higher-margin, more consistent annuity streams. However, it acknowledges that these developments present inconvenient obstacles in the near term.
Azure's growth in constant currency during Q1 exceeded expectations slightly, with a notable contribution from GenAI, as demand continues to surpass supply. Anticipated Azure growth is projected to decelerate to 31%-32% in the upcoming quarter but is expected to pick up speed in the latter half of FY25. Additionally, overall GenAI revenue is forecasted to surpass a $10B run-rate in Q2 of FY25.
After evaluating Microsoft's Q1 outcomes, the observation was made that Azure's growth in the September quarter exceeded expectations by a narrow margin. Nonetheless, the revenue forecast for Azure in the December quarter might not fully meet investor expectations, partly due to a more pronounced supply and demand imbalance compared to the September quarter. Looking ahead, Microsoft's prospects include an anticipated acceleration in Azure's growth, an increase in Microsoft 365 ARPU spurred by a more diverse offering, and a potential reduction in capital expenditures.
The expectation is that shares will remain within a narrow range until there is a relaxation of capacity constraints and a subsequent acceleration of Azure, anticipated to begin in the March quarter. It is projected that a more significant acceleration of overall growth will manifest as the company progresses through the calendar year 2025, fueled by the evolution of AI initiatives, which is likely to create a more favorable scenario for the following year.
Here are the latest investment ratings and price targets for $Microsoft (MSFT.US)$ from 18 analysts:
Note:
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