Hansen, Mueller Industries director, sells $105,710 in stock
Investing.com - TD Cowen has reiterated its Buy rating and $640.00 price target on Microsoft (NASDAQ:MSFT), which currently commands a $3.9 trillion market cap, ahead of the company’s first-quarter earnings report scheduled for October 29. According to InvestingPro data, the stock is trading near its 52-week high of $555.45, with analysts’ targets ranging from $483 to $710.
The firm’s research indicates that Azure data center activity has increased over the past month, suggesting positive AI demand signals and potential medium-term growth for Microsoft’s cloud business. TD Cowen expects this development could drive stronger performance in Microsoft shares. InvestingPro analysis shows Microsoft maintains a "GREAT" financial health score, with strong profitability metrics and robust revenue growth of 14.93% over the last twelve months.
For the first quarter, TD Cowen projects Intelligent Cloud revenue growth of 25% in constant currency compared to the Street’s 24.5% estimate. The firm forecasts Productivity and Business Processes growth of 12% versus the Street’s 11%, and More Personal Computing at -3% compared to the Street’s -4.5% estimate.
TD Cowen models Azure growth at 37% in constant currency, in line with consensus estimates, but suggests a potential 2% or greater beat is possible. The firm notes that a 3% beat would push Azure growth to 40%, representing another quarter of acceleration.
For total first-quarter performance, TD Cowen projects revenue of $80.9 billion and earnings per share of $3.83, above Street estimates of $80.1 billion and $3.80, respectively. The firm anticipates upward revisions following the earnings report. Trading at a P/E ratio of 38.31, Microsoft currently trades above its InvestingPro Fair Value. Discover 15+ additional exclusive insights and detailed analysis in Microsoft’s Pro Research Report, available on InvestingPro.
In other recent news, Microsoft has been in the spotlight due to several developments. Stifel reiterated its Buy rating on Microsoft, maintaining a price target of $650, citing strong performance in its Azure cloud segment. The company had exceeded expectations in its last quarter, with Azure revenue surpassing forecasts by 400 basis points and earnings per share beating estimates by 700 basis points. UBS also maintained its Buy rating and $650 price target, highlighting investor expectations for Azure cloud revenue growth of 39% for the first quarter ending in September. Meanwhile, Guggenheim expects Microsoft to slightly exceed revenue expectations across all three business segments in its upcoming fiscal first-quarter report, while maintaining a Neutral rating on the stock. Additionally, Microsoft CEO Satya Nadella received a $96.5 million pay package for fiscal 2025, marking his highest compensation since becoming CEO, with the board noting exceptional progress in artificial intelligence. In other industry news, OpenAI has acquired Software Applications Incorporated, the company behind the AI interface Sky for Mac computers. These are some of the recent developments surrounding Microsoft and related companies.
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