Market Overview

Microsoft Could Win Next Phase Of Cloud Battle, Wedbush Says

Share:
Microsoft Could Win Next Phase Of Cloud Battle, Wedbush Says

Recent field checks indicate that Microsoft Corporation (NASDAQ: MSFT) retains its strong position heading into 2020, backed by its success in providing Cloud solutions, according to Wedbush.

The Analyst

Wedbush’s Daniel Ives maintained an Outperform rating for Microsoft, while raising the price target from $170 to $185.

The Thesis

Microsoft has made significant progress in its strategic vision for Office 365 and Azure, Ives said in the note.

He added that checks with enterprise customers and partners had indicated “a clear acceleration of larger and more strategic enterprise cloud deals.”

The analyst believes that Microsoft seems well positioned to capture the lion’s share of the next phase of cloud deployments even versus Amazon.com, Inc. (NASDAQ: AMZN), which clearly won the first phase of cloud spending.

See Also: Twists And Turns Still Ahead Including Nike Earnings, Quadruple Witching

The shift to cloud is a “major secular trend” and Microsoft could continue to benefit from this through 2020 and beyond, Ives said. He expects workloads in the cloud to increase from around 32% currently to as much as 55% by 2022.

“The cloud story at MSFT is showing no signs of abating as Azure and the secular shift among enterprises to MSFT’s cloud platform is accelerating into 2020 with higher margin cloud sales opening up the next phase of growth (e.g., Office 365 migrations),” Ives wrote.

(NASDAQ: MSFT) Price Action

Shares of Microsoft were down 0.39% at $154.91 at the time of publishing on Tuesday.

Latest Ratings for MSFT

DateFirmActionFromTo
Mar 2020CitigroupMaintainsNeutral
Mar 2020Piper SandlerMaintainsOverweight
Mar 2020Morgan StanleyMaintainsOverweight

View More Analyst Ratings for MSFT
View the Latest Analyst Ratings

 

Related Articles (MSFT)

View Comments and Join the Discussion!

Posted-In: Azure Daniel Ives WedbushAnalyst Color Price Target Reiteration Analyst Ratings Tech Best of Benzinga

Latest Ratings

StockFirmActionPT
MRStifelMaintains2.6
LZBStifelMaintains25.0
IQVStifelMaintains159.0
CFStifelMaintains30.0
COGStifelMaintains13.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com