Morgan Stanley analysts said in a note Friday that they believe Microsoft (NASDAQ:MSFT) remains the cybersecurity leader. The firm maintained an Overweight rating and a $465 price target on the stock.
The investment bank cited the tech giant's large installed base and broadening platform addressing multiple product categories as reasons it is still the industry leader.
Microsoft has a "formidable presence in cybersecurity," said Morgan Stanley. "With an estimated $25 billion in revenue, up 25% YoY, and >1 million customers, we believe security remains an underappreciated source of growth for Microsoft and estimate >$30 billion in revenue by FY25."
Furthermore, the bank sees Microsoft making further share gains, driven by the increased demand for vendor consolidation, the significant and growing investment capacity, and the company leveraging GenAI to copilot the way to security automation.
"As security remains a top priority for enterprises, we believe Microsoft is well positioned to capture incremental market share," added Morgan Stanley. "With the security business now much larger in scale, representing >15% of incremental revenue, we think this is an increasingly important component of durable mid-teens topline growth overall for Microsoft."