Microsoft (MSFT) Guidance Likely to be Conservative but LT Opportunity Remains Intact - Morgan Stanley

Morgan Stanley analyst Keith Weiss reiterated an Overweight rating and $230.00 price target on Microsoft (NASDAQ: MSFT) noting that survey work indicates a likely larger than anticipated decline in 2020 IT spend but believes that fear over conservative initial FY21 guidance should not get in the way of the most attractive secular positioned story in tech.

The analyst stated "our survey work called out one of the best up/down spending ratios among large cap peers, continued cloud adoption benefitting Azure and Microsoft broadly, the leading hybrid cloud positioning, and exposure to high priority and defensive IT projects. Against this backdrop, we would expect initial FY21 guidance to be conservative, though considering the multiple growth drivers and management's history of consistent execution and outperformance, we continue to see a path for double-digit revenue growth in FY21".

For an analyst ratings summary and ratings history on Microsoft click here. For more ratings news on Microsoft click here.

Shares of Microsoft closed at $209.17 yesterday.

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