Piper Sandler analyst Brent Bracelin raised the firm’s price target on Microsoft to $400 from $348 and keeps an Overweight rating on the shares. The company’s artificial intelligence tailwinds could accelerate sales growth for the next three years, the analyst tells investors in a research note. The incremental revenue, profit and cash flows generated from Microsoft Cloud have more than offset a lower gross margin, says Piper. The firm has “increasing confidence” that Microsoft has the “courage, conviction, and history to bring AI to the masses.” This is based on bullish commentary coming from third party data for April and the company’s Build developer conference in Seattle.
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