Microsoft (MSFT) PT Raised to $325 at BofA Securities on Likely Azure Upside

BofA Securities analyst Brad Sills raised the price target on Microsoft (NASDAQ: MSFT) to $325.00 (from $305.00) on the belief there is potential for 2% -3% upside to the Q4 rev est of $44.1bn (+16% y/y) from sustained Azure and O365 strength on easier comparisons.

The analyst reiterated a Buy rating, stating "We expect $900mn to $1.2bn upside to our IC rev est for $16.4bn (+22% y/y) from Azure and server annuity upside. For Azure, easier comparisons (47% y/y growth in Q4FY20, vs 59% in Q3) and channel feedback suggesting strong cont’d momentum in Azure IaaS/PaaS workload migration is likely to drive accel to low/mid 50s total Azure growth (from 50% in Q3), vs. our est for 41% y/y growth, translating to $700mn to $900mn upside. Feedback from calls with key Microsoft partners suggests sustained Azure attach to Dynamics, O365 and Power deals".

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