Microsoft (MSFT) dominates the $53b Productivity Suite market with ~80% customer market share - TD Cowen

November 21, 2023 8:32 AM EST
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TD Cowen analyst J. Derrick Wood reiterated an Outperform rating and $390.00 price target on Microsoft (NASDAQ: MSFT).

The analyst commented: "MSFT dominates the $53b Productivity Suite market with ~80% customer market share (higher in dollar share), and while we believe Google is likely to take share over time as it garners more usage from the younger generation, MSFT enjoys high customer satisfaction up & down market (~97% very/somewhat satisfied), a strong foothold in the enterprise, an effective bundling strategy, and lots of incentives to drive upgrades. Key compelling survey insights for MSFT include 1) substantial revenue opportunities ahead from Copilot, MSFT's new GenAI tool for its M365 suite; 2) lots of room to increase Azure + MS365 bundling and gain IaaS share; 3) SKU upgrade momentum remains high though slightly moderated Y/Y; 4) continued interest in replacing UCaaS point tools with Teams; 5) continued interest in replacing Endpoint Security point tools with Defender; and 6) breadth of products continuing to favor MSFT. Below we list our top three takeaways from the survey."

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 $377.44 yesterday.

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