Microsoft Corporation is scheduled to report its fiscal-year third-quarter results after the market closes next Tuesday. Ahead of the event, an analyst at Piper Sandler sounded out downside risks but retained his bullish bias.
Microsoft Analyst
Brent Bracelin maintained an Overweight rating and $352 price target on Microsoft shares.
Microsoft Thesis
Durability of the Microsoft model will be on full display next week, helped by the increase in the cloud mix shift to 48 percent of the total revenues from 41 percent in 2021, analyst Bracelin said.
The analyst sees a positive bias for Office365, where new productivity, collaboration, and security features continue to be layered in; this is particularly important as labor remains one of the highest costs for most large enterprises, he added.
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