Analyst Paul Chew of Phillip Securities maintained a Buy rating on Microsoft (MSFT – Research Report), with a price target of $480.00.
Paul Chew has given his Buy rating due to a combination of factors that highlight Microsoft’s strong position in the cloud and AI sectors. The company’s Intelligent Cloud segment, particularly Azure, is experiencing significant growth, with expectations of accelerated expansion as new data center capacities come online. This growth is supported by the rising demand for AI models, which enhances Azure’s attractiveness and contributes to increased revenue through Copilot AI tools.
Additionally, Microsoft continues to see robust demand for its Office 365 suite, driven by higher average revenue per user and the adoption of E5 upgrades and Copilot tools. The company’s strategic investments in AI and data centers, alongside its ability to embed AI capabilities across its products, position it well to capitalize on the ongoing AI boom. These factors, coupled with a strong financial outlook and a maintained DCF target price, underpin the Buy recommendation.
In another report released yesterday, Morgan Stanley also maintained a Buy rating on the stock with a $472.00 price target.