Microsoft (MSFT) stock climbed Wednesday after the software giant received several upbeat reports from Wall Street analysts.
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Investment bank Truist Securities initiated coverage of Microsoft stock with a buy rating and set a three-year price target of 600. Meanwhile, Macquarie kept its outperform rating on MSFT stock and raised its price target to 430 from 405.
In morning trades on the stock market today, Microsoft stock rose 0.3% to 375.33.
Microsoft stock is in the 5% buy zone following its Nov. 10 breakout from a cup base with a buy point of 366.78, according to IBD MarketSmith charts.
Microsoft Stock Called Undervalued
Microsoft’s cloud computing and artificial intelligence initiatives are fueling strong revenue growth, Truist analyst Joel Fishbein said in a client note Wednesday.
“We think Microsoft will continue to enjoy the tailwind of a strengthening AI and cloud business for the next decade,” Fishbein said. Its business drivers include Azure cloud infrastructure services and Copilot generative-AI services, he said.
Macquarie analyst Frederick Havemeyer said MSFT stock is undervalued based on its AI Copilot opportunities. Microsoft has been adding Copilot assistants to its Office productivity software and other applications.
“Microsoft is a Gen-AI leader with its OpenAI partnership, Azure AI ecosystem, and expanding Copilot product portfolio,” Havemeyer said in a client note Wednesday. “We think Copilot uptake will not be immediate, but can generate share price upside as profitable monetization expands over the next few years.”
MSFT Stock Is A Long-Term Leader
Microsoft is one of the Magnificent Seven stocks that have fueled the stock market growth this year.
Further, Microsoft stock is on five IBD stock lists. They include the IBD 50, Leaderboard, Big Cap 20, Long-Term Leaders and Tech Leaders.
Follow Patrick Seitz on X, formerly Twitter, at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.
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