UPDATE: Wolfe Research Starts Microsoft (MSFT) at Outperform
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Wolfe Research analyst Alex Zukin initiates coverage on Microsoft (NASDAQ: MSFT) with a Outperform rating and a price target of $290.00.
The analyst comments "Azure and Office 365 account for three-quarters of Microsoft’s revenue growth today, which makes these businesses the key areas of focus. We believe both businesses are in the early-to-middle innings of their lifecycles, and both capable of sustaining strong growth rates above most investors’ expectations for years to come. Robust growth from these two businesses combined with GDP-level growth from all of Microsoft’s other businesses support double digit topline growth for the next 3+ years. This topline growth profile combined with typical margin leverage/opex growth can support a mid-to-high teens EPS growth rate over the same time period, which we believe will be fundamental to unlocking near- and long-term stock appreciation."
Shares of Microsoft closed at $260.58 yesterday.
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