Bank of America sees big year for Microsoft ahead
- Bank of America named Microsoft one of its top software picks for 2020.
- Gaming, LinkedIn and cloud computing are three areas of growth, according to analysts.
- Microsoft shares have outpaced the broader market in 2019, rising more than 50%.
Analysts at the bank named Microsoft one of its top software picks for 2020, raising the price target on the stock to $200 per share from $162. The new target represents a 27.7% rise from where the stock closed on Christmas Eve.
Microsoft has several key growth drivers, including gaming and LinkedIn, and cloud computing service Azure is poised to make up more than 40% of the company's annual growth in the coming years, according to Bank of America's note to clients.
"Given that Azure has still not reached scale in terms of margins, it is still a meaningful driver for gross margins long term," the note said.
The software giant's revenue could continue growing more than 10% annually, the note said, and its commercial cloud business may soon surpass the legacy Windows PC and server segments.
Microsoft shares have outpaced the broader market in 2019, rising more than 50% verses nearly 29% for the S&P 500.
Harvard neuroscientist: The 'most underrated' skill all successful people have—'especially introverts'
This ‘best job’ of 2023 pays over $100K, offers remote opportunities and doesn’t require a degree
CDC urges people with weak immune systems to take extra precautions after Covid knocks out Evusheld
White House approves more than 16 million people for contested student loan forgiveness plan
32-year-old brings in $39,000 a month renting his 2 boats to strangers—and only works 30 mins/day