Microsoft, the Technology sector company, was revisited by a Wall Street analyst today. Analyst Brent Thill from Jefferies maintained a Buy rating on the stock and has a $675.00 price target.
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Brent Thill has given his Buy rating due to a combination of factors that highlight Microsoft’s strong performance and growth potential. One of the key reasons is the impressive growth in Microsoft’s Remaining Performance Obligation (RPO), which accelerated significantly last quarter, indicating robust future revenue streams. Additionally, the strategic partnership with OpenAI has further bolstered Microsoft’s position in the AI sector, contributing to a substantial year-over-year increase in RPO.
Moreover, Thill notes the persistent capacity constraints due to AI demand outstripping supply, suggesting a strong market for Microsoft’s AI offerings. The adoption of Microsoft’s Copilot is also gaining traction, which is expected to drive further growth. These factors, combined with insights from recent industry conferences and discussions with Microsoft management, reinforce the positive outlook for Microsoft’s stock.
In another report released on November 25, Bernstein also maintained a Buy rating on the stock with a $645.00 price target.