Microsoft Inc. (MSFT) is likely to again exceed earnings expectations for its December quarter, as the current work-from-home environment is accelerating the shift to cloud, Wedbush analyst Dan Ives wrote in a Wednesday note. "While we have seen the momentum of this backdrop in the last few quarters, we believe deal flow looks strong heading into the rest of FY21 as we estimate that Microsoft is still only 35% through penetrating its unparalleled installed base on the cloud transition," Ives wrote. "To this point, we believe Azure's cloud momentum is still in its early days of playing out within the company's massive installed base and the Office 365 transition for both consumer/enterprise is providing growth tailwinds over the next few years." Wedbush rates Microsoft as outperform and is sticking with its $260 12-month price target, which is just above its current price of $224.77. Ives is also sticking with his view that Microsoft is the core cloud name to play the sector during the pandemic, with a further infection in cloud growth to come.
-Ciara Linnane; 415-439-6400; AskNewswires@dowjones.com
(END) Dow Jones Newswires
December 30, 2020 07:14 ET (12:14 GMT)
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