BMO Capital upgraded Microsoft to Outperform from Market Perform with a price target of $347, up from $325. Following last night’s results, the analyst has higher conviction that Azure growth headwinds will moderate by the end of 2023 and artificial intelligence can help support Microsoft’s longer-term growth. Further, the firm thinks Office growth “can remain healthy,” helped by CoPilot. While the stock is not inexpensive, the company’s durable growth opportunities warrant a premium valuation, contends BMO.