Microsoft price target raised to $580 from $540 at TD Cowen

Investing.com - TD Cowen has raised its price target on Microsoft (NASDAQ:MSFT) stock to $580.00 from $540.00 while maintaining a Buy rating ahead of the company’s fourth-quarter earnings report scheduled for July 30. The tech giant, currently trading at $512.03, has a market capitalization of $3.81 trillion and carries a "GREAT" financial health score according to InvestingPro analysis.

The firm cited Microsoft’s increasingly attractive position as a "clear beneficiary in the AI cycle" as the primary reason for the price target increase. Microsoft shares have recently reached all-time highs in the market, with the stock showing impressive revenue growth of 14.13% over the last twelve months and maintaining a robust gross profit margin of 69%.

TD Cowen’s analysis indicated strong performance checks for Microsoft’s Azure cloud computing platform, with expectations that previous capacity constraints are beginning to ease.

The research firm has developed a new "bottoms-up" financial model that gives them confidence Azure growth will trend "well above" current Wall Street expectations in the quarters ahead.

Microsoft stock has been performing strongly as investors continue to favor companies with significant artificial intelligence capabilities and cloud computing infrastructure.

In other recent news, Microsoft has been actively expanding its AI and cloud offerings, with Cantor Fitzgerald raising its price target for the company to $581, citing strong growth in its Azure cloud computing business. Wells Fargo (NYSE:WFC) also increased its price target for Microsoft to $600, highlighting robust Azure growth and the adoption of Microsoft 365 Copilot. These developments reflect positive momentum for Microsoft, with expectations of sustained growth in its AI and cloud segments. Additionally, Microsoft announced a partnership with the Idaho National Laboratory to use AI in expediting nuclear power plant permits, potentially reducing the licensing process to 18 months. This initiative is part of a broader effort to meet increasing energy demands from AI data centers. Meanwhile, Jefferies upgraded Bytes Technology (LON:BYIT) Group to Buy, despite a recent slowdown, due to its reliance on Microsoft’s fundamental health. The firm anticipates a future recovery, viewing the current valuation as an attractive opportunity for investors. These recent developments indicate significant activity and strategic initiatives within Microsoft and related sectors.

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