- Before Microsoft Corp. MSFT fourth quarter results, Swiss credit analyst Phil Winslow says he expects Azure to remain the top target for investors and his confidence in its growth remains high.
- His conviction held despite investor concerns about a deteriorating economy that could lead to slower growth for Azure and Commercial Office, supply chain issues negatively impacting Windows, and headwinds on the FX translation.
- Specifically, its channel audits indicate that recent price increases and continued uncertainty in hardware equipment delivery have further accelerated the shift from on-premises capital investment model to spend-as-a-service. He also saw Azure benefit disproportionately, as an “enterprise cloud”, from the accelerated move to the public cloud.
- Although the last 24 months have sparked faster adoption of cloud infrastructure, demand for Azure capacity continues to grow faster than supply has reinforced its thesis that 2022 and 2023 will be defined by companies moving on sheets. multi-year “strategic” cloud-focused transformation roadmap. .
- So he thinks there’s an upside to consensus constant currency growth forecasts for Azure.
- He expects Azure to continue narrowing the revenue gap to #1 Amazon.com Inc. AMZN AWS and widen the gap to #3 Alphabet Inc. GOOG GOOGL GoogleCloud.
- Winslow has an outperform rating and a $400 price target on the stock.
- Price Action: MSFT shares traded down 3.26% to $250.39 when last checked on Tuesday.
- Photo by Rainer Stropek via Flickr
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