09:13 AM EST, 11/11/2024 (MT Newswires) -- Microsoft ( MSFT ) Azure's expected acceleration in H2 has been the top of mind for investors in dialogues held by RBC Capital Markets since it met with some Microsoft ( MSFT ) executives recently, RBC said in a note Sunday.

RBC said that overall, investors seemed disappointed with the company's fiscal Q1 results, including its fiscal Q2 outlook, "and are now in wait-and-see mode."

"The top focus of conversations was understanding drivers of and confidence in the H2 Azure acceleration," the firm said.

RBC believes that until the release of the fiscal Q2 results, many investors will be on the sidelines or underweight Microsoft ( MSFT ). The investment firm said it expects H2 Azure growth of 34% to 35% in constant currency terms, which would set the company "well up" for fiscal 2026.

RBC maintained an outperform rating on Microsoft ( MSFT ) with a $500 price target.

Price: 423.00, Change: +0.46, Percent Change: +0.11