08:50 AM EDT, 06/24/2025 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We raise our 12-month target to $550 from $490, on a P/E of 31.6x but shifting to our FY 27 (Jun.) EPS view, which we start at $17.40. The multiple is slightly above MSFT's three-/five-year historical forward averages of 30.1x/31.1x given growth prospects tied to AI offerings partly offset by elevated capex spend. We think MSFT will be able to execute its AI initiatives over the next 12 to 18 months, adding greater visibility to long-term growth potential. We keep our FY 25 EPS estimate at $13.36 and raise FY 26 to $14.93 from $14.72. We believe that Azure continues to grow within/slightly ahead of our expectations and remains a key growth engine for the company, as we see a pace of 33%-35% on a constant currency basis through the rest of the calendar year. We think Azure is poised to see strong growth through CY 26, as compute capacity grows and more complex reasoning models drive new AI use cases. We expect contribution from AI services to grow to 16%-pts to 18%-pts in the Jun-Q (16%-pts in Mar-Q).