Morgan Stanley Reiterates Equal-Weight Rating on Microsoft Following Analyst Day
In a report published Friday, Morgan Stanley analyst Keith Weiss reiterated an Equal-Weight rating on Microsoft Corporation (NASDAQ: MSFT).
In the report, Morgan Stanley noted, “MSFT provided interesting incremental detail on its underappreciated assets, highlighting the growth in its cloud businesses and strength in its enterprise assets. In FY13, Office 365 seats were +350% YoY and is now at $1.5B rev. run rate, Azure grew 200% and CRM Online was +80% YoY. The ramp in Cloud will necessitate higher capex with MSFT pointing to ~$6.5B in capex in FY14 vs. our model of $5.6B and FY13 of $4.3B. Near-term investments should better position MSFT long-term as Office 365 should lead to a larger overall Office rev. base by FY17. However, with little new detail on MSFT's long term vision, it's unlikely the Analyst Day changed investors' perspective on the stock.”
Microsoft Corporation closed on Thursday at $33.32.
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