DBS analyst Sachin Mittal maintains $Microsoft (MSFT.US)$ with a buy rating, and maintains the target price at $531.
According to TipRanks data, the analyst has a success rate of 72.1% and a total average return of 20.2% over the past year.
Furthermore, according to the comprehensive report, the opinions of $Microsoft (MSFT.US)$'s main analysts recently are as follows:
Microsoft's Q3 results did not meet expectations, yet there remains a positive stance on the Azure outlook for 2025.
The firm has acknowledged the first-quarter results of Microsoft as 'broadly stable-good,' which aligns with their expectations. Despite the second quarter's total revenue consensus being within a reasonable range and seemingly achievable, Microsoft's guidance fell short, which led to a decline in share prices after hours. The most significant shortfall in guidance was within the More Personal Computing sector. However, this sector is perceived as less critical to Microsoft's core investment thesis due to the higher-margin, more consistent annuity streams that are more central to the company's value. Nevertheless, these recent events are considered to present inconvenient obstacles in the near term.
Microsoft's Azure platform exhibited a 34% growth in constant currency during Q1, slightly surpassing expectations, attributed in part to the GenAI contribution, which accounted for up to 12 percentage points as demand continues to exceed supply. It is anticipated that Azure's growth will decelerate to 31%-32% in the upcoming quarter before picking up pace in the second half of FY25. Additionally, management anticipates that total GenAI revenue will surpass a $10B run-rate in Q2 of FY25.
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