Evercore ISI analyst Kirk Materne has maintained their bullish stance on MSFT stock, giving a Buy rating today.
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Kirk Materne has given his Buy rating due to a combination of factors that highlight Microsoft’s strong growth potential, particularly through its Azure cloud platform. The anticipated acceleration in Azure’s growth, driven by AI adoption and increased capacity, positions Microsoft well for continued success. Materne expects Azure to maintain growth in the low to mid-30% range over the coming quarters, supported by solid demand for both AI and non-AI solutions as businesses transition to cloud-based operations.
Additionally, while Microsoft is expected to continue its aggressive capital expenditure strategy, the growth rate of these expenditures is likely to normalize, aligning more closely with overall cloud growth. The operational margin guidance for FY26, although slightly down from FY25, is seen as conservative, with potential for upside given Microsoft’s track record of cost management. These factors, combined with adjustments to estimates and a raised price target of $545, underscore the belief in Microsoft’s ability to sustain double-digit growth and justify a higher valuation multiple.
In another report released today, Loop Capital Markets also maintained a Buy rating on the stock with a $600.00 price target.