Microsoft (MSFT) Retains Buy Rating at UBS as Azure Growth Momentum Skews Positive

Microsoft Corporation (NASDAQ:MSFT) is one of the AI Stocks Making Waves on Wall Street. On October 22, UBS maintained its “Buy” rating on the stock with a $650.00 price target. The firm has maintained its rating driven by positive momentum in the company’s Azure cloud business.

According to the analysts, investors are focused on Microsoft’s Azure unit delivering an estimated 39% revenue growth in the quarter that ended September. It also forecasts that Microsoft will guide for a modest deceleration to 37-38% growth for Azure in the second quarter ending December.

Moreover, the risk/reward profile for near-term Azure growth “skews positive,” and feedback from enterprise customers and partners has also improved.

“In our view, the investor bogey is for c/c Azure growth of 39% for 1Q/Sept, a 2-point beat, and guidance for a modest deceleration to 37–38% growth in 2Q/Dec. In our view, the risk/reward on near-term Azure growth skews positive. As we outlined in our accompanying quarterly Cloud Infra preview report, the tone from enterprise customers and partners has improved again, with large Azure partners citing accelerating growth trends.”

Microsoft Corporation (NASDAQ:MSFT) provides AI-powered cloud, productivity, and business solutions, focusing on efficiency, security, and AI advancements.

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