Microsoft Corp (MSFT)

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Analysts Boost Price Targets on 4 Top-Large Cap Technology Winners
By: 24/7 Wall St. | January 29, 2021

Microsoft

This is a more conservative way for investors to participate in the massive cloud growth and utilization. Microsoft Inc. (NASDAQ: MSFT) manufactures, licenses, and supports a wide range of software products. The company has transformed its business model from a component-driven model (PC, server) to one driven by the need for cloud capacity.

Many Wall Street analysts agree that Microsoft has become a clear number two in the public or hyper-scale cloud infrastructure market with Azure, which is the company’s cloud computing platform offerings, and which continues growing at triple-digit levels. Some have flagged Azure as the biggest rival to Amazon’s AWS service.

Some analysts maintain that Microsoft is discounting Azure for large enterprises, such that Azure may be cheaper than AWS for larger users. The cloud was big in 2020 earnings reports, and it will remain a growing part of the software giant’s earnings profile.

The legacy software giant posted outstanding results and the analysts said this:

Microsoft reported strong second fiscal quarter results with upside from Azure momentum (+$700 million to our estimate) and Xbox (+$900 million) from new console launch. Commentary on Azure deals >$10 million and enterprise resource planning deployments at large organizations underscore momentum in enterprise for mission critical workloads.

Shareholders receive a 0.93% dividend. The BofA Securities raised its $256 price target to $285, well above the $243.33 consensus target. Microsoft stock closed at $238.93 on Thursday, after close to a 3% gain on the day.

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