2024-06-18 05:03:00 ET
It's easy to get caught up on Wall Street's never-ending cycle of upgrades and downgrades. After all, these analysts live and breathe these stocks and have all the latest data. However, for serious investors, short-term stock price movements are completely meaningless, but the logi c behind the analysts' sentiments can provide valuable insight into what's ahead for the company. Such is the case here.
Wedbush analyst Dan Ives maintained a buy rating on Microsoft (NASDAQ: MSFT) stock while increasing his price target to $550, up from $500, noting the company is part of the firm's "Best Ideas List." That represents potential gains for investors of 24% compared to Friday's closing price. Microsoft stock has gained 73% (or 20% annually) over the past three years, so forecasting 24% gains over the coming 12 months isn't that much of a stretch.
Ives cites recent channel checks for his bullish call, saying there's a "tidal wave of Copilot and Azure monetization now on the doorstep" for Microsoft. He estimates that artificial intelligence (AI) will generate $25 billion in incremental revenue in fiscal 2025. The analyst's forecast could well be conservative.
For further details see:
Will Artificial Intelligence (AI) Drive Microsoft Stock to $550? 1 Wall Street Analyst Thinks So.