Just four weeks after saying Microsoft has “unparalleled” cloud advantages, Wedbush has raised its target price from $260 to $270.
Microsoft has been making moves in the cloud industry, outpacing the industry’s growth rate and posing an ever bigger challenge to AWS. In particular, the company’s vast installed base give it a huge advantage in the cloud market, as existing customers have a sense of familiarity with the company’s products and ecosystem.
On the verge of Microsoft’s earnings on Tuesday, Wedbush analyst Dan Ives said the remote work environment is also working to boost Microsoft Azure, according to Business Insider.
“This current work-from-home environment is further catalyzing more enterprises to make the strategic cloud shift with Microsoft across the board with Azure growth remaining brisk,” Ives said in a note to clients.
Wedbush has raised its target to $270, but see $300 per share as a distinct bull-case possibility. According to BI “Ives estimates that Microsoft has only met 35% of the market for its cloud product and that permanent telework will accelerate other companies’ deployments of cloud-computing deals.”
The report is good news for Microsoft as all eyes look to its earnings report Tuesday.
