© Reuters. Microsoft cloud deal flows (MSFT) hold steady – Wedbush
By Sam Boughedda
Wedbush analysts raised the company’s price target on Microsoft (NASDAQ:) to $290 from $280, maintaining an outperform rating for the stock in a note to clients on Friday.
Analysts told investors the move to raise the price target reflects more positive recent cloud controls, with cloud deal flows holding flat for the company.
“At the middle of the March quarter, we are seeing steady business cloud spending for Microsoft that has leveled off from the weakness we saw in December,” the analysts wrote.
They added that while macro uncertainty is “clearly a concern” for CIOs looking to navigate a volatile IT spending environment, many larger cloud platform deals have been given the green light for Microsoft, which is a positive. so far this quarter and by 2023.
“Partners have quoted cloud budgets mostly in place with some outputs having ‘leveled off’ over the past month,” the analysts added.
“We see that with less than 50% of workloads in the cloud, the transformational shift to cloud platforms remains a key IT priority for enterprises globally, with Azure extremely well positioned to gain share in the backyard of your company.