UBS Raises Microsoft Price Target to $650
- Rating
- Buy
- Price target
- $650
- from $600
- Implied upside
- +27%
- vs $513.24 prior close
UBS analyst Karl Kierstead raised the price target on Microsoft (NASDAQ: MSFT) to $650 (from $600) while maintaining a Buy rating.
“For the second quarter in a row, Microsoft surprised with a material 4-point Azure growth rate beat, posting 39% c/c Azure growth and guiding to 37% (which strikes us as conservative) for 1Q/Sept.
Total revs growth of 17% c/c was extraordinary at Microsoft’s scale, the margin performance came in betterthan- expected and the backlog/bookings growth of 35%/30% was stellar.
This was as clean as Microsoft quarters get and represents a positive read-through to AWS and several other peers. We remain Buy-rated. Key takes were: 1.
Microsoft again pinned the Azure upside on core or non-AI demand, especially large enterprise on-prem to Azure workload migrations.
That said, the two-quarter acceleration in Azure growth from 31% to 39% is so material that we can’t help but wonder if Azure is getting an incremental boost from Microsoft standing up materially more GPU infrastructure.”
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Tracking this call
Since this note+3% MSFT $513.24 → $529.30 (Oct 7) · 12% of the way to the target
This call at 6 months✗ Not reached in six months: MSFT closed at $430, 34% below the $650 target, and it moved the other way. At 12 months: not reached.
Firm track recordUBS reached 75% of its 53 scored targets within six months (#7 of 31 firms). Accuracy ranking →
