© Reuters. Citi expects Microsoft (MSFT) to submit strong beat and lift, lifts inventory value goal
Citi expects a strong beat and lift from Microsoft (NASDAQ:) when it experiences earnings subsequent week. The agency lifted its value goal for the tech large to $470 from $432 per share, sustaining a Purchase ranking on the inventory in a be aware Wednesday.
The financial institution believes Microsoft’s “ramping” generative AI ought to maintain development accelerating for the corporate.
Citi’s newest spherical of fieldwork (reseller survey, channel checks and its CIO survey) offers them “incremental confidence” heading into the MSFT earnings launch with “resellers indicating excessive quota achievement ranges on a broad-based energy (Azure commitments + Dynamics, and many others).”
“We anticipate a strong beat and lift and imagine enhancing IT budgets, partially pushed by GenAI the place MSFT is in a management place w/ a number of monetization vectors can drive a sturdy multi-year reacceleration in high/backside line development,” stated analysts.
MSFT stays the financial institution’s most popular mega-cap title in software program, whereas it sees the corporate benefitting from higher Azure development and a positive international change and PC market.