Analyst Keith Weiss from Morgan Stanley maintained a Buy rating on Microsoft (MSFT – Research Report) and increased the price target to $530.00 from $482.00.
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Keith Weiss has given his Buy rating due to a combination of factors that highlight Microsoft’s strategic positioning and financial performance. One of the primary reasons is Microsoft’s significant investments in Generative AI, which are starting to show promising returns. These investments not only contribute directly to monetization but also enhance Microsoft’s share of the IT wallet, particularly through the Azure platform. The company’s strong execution in this area is expected to accelerate Azure’s growth, supported by disciplined expense management.
Furthermore, the updated analysis on capital expenditures implies a positive outlook for Azure’s AI revenue, reinforcing confidence in Microsoft’s future performance. This optimism is reflected in the increased price target of $530, indicating a belief in sustained growth and profitability. Overall, the combination of strategic investments, solid execution, and financial discipline underpins the Buy rating for Microsoft’s stock.
In another report released yesterday, Wells Fargo also maintained a Buy rating on the stock with a $585.00 price target.
Based on the recent corporate insider activity of 77 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of MSFT in relation to earlier this year.