Microsoft price target raised to $525 from $500 at RBC Capital

RBC Capital analyst Rishi Jaluria raised the firm’s price target on Microsoft (MSFT) to $525 from $500 and keeps an Outperform rating on the shares. The firm notes Microsoft reported solid Q3 results leading shares up 7% after hours. Azure growth of 33% came in above expectations, with AI services revenues ramping to a 16-point contribution. Revenue and profitability came in above street estimates with beats across the board. RBC was pleased to see execution from the core Azure business, and capacity constraints appear to be getting under control. The firm remains positive on the risk/reward.