Microsoft Price Target Raised to $40 at UBS, Five Catalysts for Potential Growth Named

UBS analyst Brent Hill raised his price target on Microsoft MSFT shares from $33 to $40 on Tuesday. The key drivers for stock price, according to Hill, were:

• Increased visibility on earnings;
• Increased momentum on Microsoft's cloud services;
• Underappreciated enterprise businesses;
• Catalysts for PC improvements; and
• Seasonal cash flow into tech for the second half of the year.

The new $40 PT implies an approximately 13 percent further upside compared to where the stock is currently trading.