10:40 AM EDT, 05/01/2025 (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 hold our 12-month target at $490, on a P/E of 32.8x our CY 26 view, which compares to its 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 AI initiatives over the next 12 to 18 months, adding greater visibility to long-term growth potential. We raise our FY 25 (Jun.) EPS estimate to $13.36 from $13.01 and keep FY 26 at $14.72. We think MSFT is ready for take-off as it has successfully found a good place to level off/modestly increase capex spend ($80B target in CY 25 kept; looking for modest increase in CY 26) while AI revenue gains momentum from rising Blackwell capacity and greater Copilot adoption, among other things. This should support upside to free cash flow assumptions, especially as MSFT executes on Azure ambitions (+34%-35% constant currency growth seen in Jun-Q). We think MSFT's software-driven business model will remain resilient during uncertain times.