BMO Capital Markets analyst Keith Bachman reiterated the Outperform rating on Microsoft Corporation (NASDAQ:MSFT), raising the forecast to $465 from $455.
Per the analyst, Microsoft’s valuation is reasonable on an EV/FCF and P/E basis, but not inexpensive.
The analyst writes that AI can help support longer-term growth, and the durable growth opportunities warrant a premium valuation.
Microsoft is well positioned in the gaming market, particularly since leading content and scale are sources of competitive advantage. In the December quarter, gaming generated 11% of total revenues.
While ...