Microsoft (MSFT) PT Raised to $325 at Stifel
Stifel analyst Brad Reback raised the price target on Microsoft (NASDAQ: MSFT) to $325.00 (from $305.00) while maintaining a Buy rating.
The analyst commented, "MSFT posted another strong quarter, topping estimates across-the-board as enterprises are increasingly making bigger and bigger long-term commitments to the company's growing suite of products. The highlight of the quarter was 30% Commercial bookings growth, even in light of a difficult YoY comp and a limited renewal base, driven by significant growth in $10M+ deals.
The ongoing Commercial Cloud strength is a clear sign the pandemic is forcing organizations to accelerate their respective Cloud migrations and that Microsoft is a key beneficiary as its broad stack enables it to tap into previously out of reach Tier-1 workloads.
Net/net, this large and ever growing backlog of Commercial business positions MSFT extremely well to post better than expected Commercial Cloud (Azure, O365, D365, Linkedin, etc.) growth and, when coupled with continued operational discipline, should enable operating income and cash flow to grow faster than revenue in coming years. Target price to $325."