12:49 PM EDT, 04/11/2024 (MT Newswires) -- Microsoft's ( MSFT ) "strong secular positioning" in tech, cloud and generative artificial intelligence should help the company double its earnings per share to $24 by fiscal 2029, Morgan Stanley said in a note Thursday.

Given the company's leading position, the business should be able to achieve a compound annual growth rate of 14% in revenue and 16% in earnings per share over the next five-year period, the firm said.

Growth in the company's earnings and revenue will be driven by its cloud business, while its first mover advantage in generative AI should further compound the gains.

Morgan Stanley estimates the company's revenue from its largest three generative AI initiatives could jump from around $5 billion in 2024 to almost $67 billion in 2029, and as much as $120 billion in a bullish scenario.

The firm raised its price target to $520 from $465 on the company's stock and maintained its overweight rating.

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