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Investing.com - UBS maintained its Buy rating and $650.00 price target on Microsoft (NASDAQ:MSFT) stock, citing positive momentum in the company’s Azure cloud business. The target represents potential upside from the current price of $517.66, though InvestingPro analysis suggests the stock is currently trading above its Fair Value.
UBS analyst Karl Kierstead noted that investor expectations center around Azure cloud revenue growth of 39% for the first quarter ending September, which would represent a 2-point beat over previous forecasts.
The firm anticipates Microsoft will guide for a modest deceleration to 37-38% growth for Azure in the second quarter ending December.
UBS believes the risk/reward profile for near-term Azure growth "skews positive" based on its analysis of current market conditions.
The investment bank reported that feedback from enterprise customers and partners has improved, with large Azure partners specifically "citing accelerating growth trends" in Microsoft’s cloud infrastructure business.
In other recent news, Microsoft has been in the spotlight with several notable developments. The company announced that CEO Satya Nadella received a $96.5 million pay package for fiscal 2025, marking his highest compensation since taking the helm over a decade ago. This substantial increase from the previous year’s $79.1 million highlights the board’s recognition of Microsoft’s progress in artificial intelligence. Meanwhile, Cantor Fitzgerald reiterated an Overweight rating for Microsoft, following the company’s decision to end support for Windows 10. This move affects nearly 60% of corporate devices worldwide, as they will no longer receive software updates or security patches.
Additionally, Microsoft is adopting a more flexible approach to its return-to-office mandate by exempting many sales roles, acknowledging the unique nature of their work. In a related industry development, Morgan Stanley initiated coverage on AvePoint with an Overweight rating, citing Microsoft’s strong position in the generative AI market as a key factor. These recent developments underscore Microsoft’s ongoing influence and strategic adjustments in the tech industry.
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