BofA Securities analyst Bradley Sills maintains $Microsoft (MSFT.US)$ with a buy rating, and maintains the target price at $510.
According to TipRanks data, the analyst has a success rate of 51.4% and a total average return of 3.4% over the past year.
Furthermore, according to the comprehensive report, the opinions of $Microsoft (MSFT.US)$'s main analysts recently are as follows:
While Microsoft's Q3 results did not meet expectations, the outlook for Azure leading into 2025 remains positive and supports a continued Buy recommendation.
The analyst expressed no concerns with Microsoft's Q1 results, which were characterized as broadly stable and satisfactory. Despite Q2 total revenue consensus being reasonable and seemingly achievable, Microsoft's guidance fell short, prompting a decline in share value after hours. The most significant shortfall in guidance was within the More Personal Computing segment. However, this segment is deemed less critical to Microsoft's core investment thesis than the higher-margin, more consistent annuity streams. The developments are viewed as presenting near-term challenges, albeit not fundamentally alarming.
Microsoft has seen Azure's growth exceed expectations by 1% point in constant currency terms during Q1, with a significant contribution of up to 12% points from GenAI, due to persistent demand outpacing supply. Although Azure's growth is anticipated to decelerate to 31%-32% in the upcoming quarter, it is projected to pick up pace again in the second half of FY25. Furthermore, total GenAI revenue is expected to surpass a $10B run-rate in the second quarter of FY25.
Note:
TipRanks, an independent third party, provides analysis data from financial analysts and calculates the Average Returns and Success Rates of the analysts' recommendations. The information presented is not an investment recommendation and is intended for informational purposes only.
Success rate is the number of the analyst's successful ratings, divided by his/her total number of ratings over the past year. A successful rating is one based on if TipRanks' virtual portfolio earned a positive return from the stock. Total average return is the average rate of return that the TipRanks' virtual portfolio has earned over the past year. These portfolios are established based on the analyst's preliminary rating and are adjusted according to the changes in the rating.
TipRanks provides a ranking of each analyst up to 5 stars, which is representative of all recommendations from the analyst. An analyst's past performance is evaluated on a scale of 1 to 5 stars, with more stars indicating better performance. The star level is determined by his/her total success rate and average return.
