07:05 AM EDT, 10/30/2025 (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 keep our 12-month target price at $620, on a P/E of 31.1x our CY 27 view of $19.93, near its five-year historical forward average. After posting better-than-expected Sep-Q results, we increase our FY 26 (Jun.) EPS estimate to $15.70 from $15.36 and FY 27 to $18.31 from $17.96. We believe the lackluster share price response reflects MSFT's comments that capex will now accelerate in FY 26 (previously cited a moderation), but appears warranted as bookings are rising at an impressive clip and AI demand outstrips supply. Commercial bookings grew +112% while commercial RPO rose 51% to nearly $400B at an average duration of two years (tied to near-term demand, not speculative long-term contracts). We expect Azure to sustain an elevated high-30's growth pace (37% seen in Dec-Q vs. 40% in Sep-Q). We believe that MSFT continues to focus on maximizing its capacity use, focusing on the best tokens per dollar per watt across Copilots to third-party enterprises and AI natives, with ARPU upside across its installed base.