In a report released yesterday, Derrick Wood from TD Cowen reiterated a Buy rating on Microsoft, with a price target of $640.00.
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Derrick Wood’s rating is based on several positive indicators for Microsoft’s future performance. He notes an increase in activity for Azure, Microsoft’s cloud computing service, which suggests strong demand for AI and potential growth in Azure’s market share. This uptick in Azure’s performance is expected to contribute to robust first-quarter results and a favorable outlook for the second quarter, especially in terms of revenue and earnings per share, which are projected to exceed market expectations.
Derrick Wood also highlights significant developments in Microsoft’s data center operations, including large-scale projects in the US and APAC regions that are anticipated to support AI workloads. These projects, along with strategic investments and partnerships, are expected to generate substantial incremental annual revenues. The ongoing strong demand for AI and increased capital expenditure activities are seen as positive signs for Microsoft’s long-term growth, reinforcing the Buy rating with a price target of $640.
In another report released on October 22, UBS also maintained a Buy rating on the stock with a $650.00 price target.
Based on the recent corporate insider activity of 75 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.