UPDATE: Redburn Starts Microsoft (MSFT) at Neutral

June 29, 2022 3:35 AM EDT
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Price: $255.02 +0.13%

Rating Summary:
    44 Buy, 9 Hold, 0 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 2 | Down: 23 | New: 24
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(Updated - June 29, 2022 6:00 AM EDT)

Redburn analyst Neil Steer initiates coverage on Microsoft (NASDAQ: MSFT) with a Neutral rating and a price target of $370.00.

The analyst comments "Azure is a key part of Microsoft’s positive equity story. In our view it is a good business that is worth $1trn. However, it is a technology laggard compared to AWS and GCP, which will become more apparent as organisations adopt more advanced technologies. To us, Azure is a two-sided sword. On the one hand, we think its deficits versus AWS and GCP are not well understood. But on the other hand, the market underestimates long-term growth for infrastructure providers. Despite Azure’s deficits, we think that a value of $1trn is not priced in Microsoft’s current valuation. We start coverage with a Buy rating and a $370 price target."

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 $256.48 yesterday.

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