Oppenheimer analyst Shaul Eyal reiterated an Outperform rating and $50 price target on Microsoft (NASDAQ: MSFT) following strong Q1 results.

Eyal commented, "MSFT delivered another solid set of results with most product lines realizing YoY growth. Of special note, MSFT's Commercial Cloud business grew 128% YoY driven by Office 365, Azure, and Dynamics CRM. Internal realignment efforts contributed to improved operating margins (ex- integration and restructuring) and it appears CEO Nadella is infusing new DNA. F2Q15 guidance is positive and we see momentum sustained into the holiday (Gaming) and year-end season (enterprise)."

The firm is adjusting 2Q14 estimate to $26.1B/$0.72 from $29.0/$0.84. FY14E goes to $98.7B/$2.73 from $100.2B/$2.91. FY15E goes to $107.6B/$3.18 from $110.1/$3.17.

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Shares of Microsoft closed at $45.02 yesterday.