Jefferies analyst Brent Thill has raised his price target for Microsoft’s stock on what he sees as strong fundamentals.

Microsoft has been on a tear in recent quarters, boosted by its Azure cloud computing platform. The company is currently in second place in the cloud industry, behind AWS, but many experts see Microsoft’s cloud platform continuing to benefit from its legacy business. Given how much of the business world runs on Microsoft, migrating to Azure is a no-brainer for many Microsoft-based shops.

With the company set to announce its quarterly results tomorrow, Brent Thill has raised his target price for the stock from $310 to $335, according to TheStreet.

“Microsoft been a significant outperformer year to date, up 30% vs the software index, setting the bar slightly higher for MSFT shares going into the” earnings report, Thill said.

“Key items to watch are fiscal 2022 margin pressure, elevated expectations and more color on recent merger acquisition and broader aspirations,” Thill added.