Microsoft (MSFT) Accelerates Top Line Growth, Jefferies Reiterates Buy

Jefferies analyst Brent Thill reiterated a Buy rating and $400.00 price target on Microsoft (NASDAQ: MSFT) after the company reported that revenue growth accelerated 1 percentage point to 21% in constant currency while providing in-line F3Q revenue guidance. This comes despite macro fears, supply chain constraints & FX headwinds.

Looking ahead though, the analyst sees tougher comps, stating "MSFT is starting to face some tougher comps which is evidenced by F4Q guidance of approx 15-16% organic cc growth vs 21% in F3Q, and 20% in F2Q & F1Q. " However, he would still be a buyer: "Shares trade attractively at 29x our CY22 EPS vs large-cap peer median 32x".

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 $270.22 yesterday.

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