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Added to YB: 2024-03-11

Pitch date: 2024-03-11

MSFT [bullish]

Microsoft Corporation

+18.93%

current return

Author Info

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Company Info

Microsoft Corporation develops and supports software, services, devices, and solutions worldwide. The company’s Productivity and Business Processes segment offers Microsoft 365 Commercial, Enterprise Mobility + Security, Windows Commercial, Power BI, Exchange, SharePoint, Microsoft Teams, Security and Compliance, and Copilot; Microsoft 365 Commercial products, such as Windows Commercial on-premises and Office licensed services; Microsoft 365 Consumer products and cloud services, such as Microsoft 365 Consumer subscriptions, Office licensed on-premises, and other consumer services; LinkedIn; Dynamics products and cloud services, such as Dynamics 365, cloud-based applications, and on-premises ERP and CRM applications.

Market Cap

$3.6T

Pitch Price

$402.37

Price Target

475.00 (-1%)

Dividend

0.75%

EV/EBITDA

21.47

P/E

34.39

EV/Sales

12.29

Sector

Software

Category

growth

Show full summary:
Microsoft Corporation - $MSFT

Company_name: Microsoft Corporation Ticker: MSFT Price_target: 475 Description: $MSFT Evercore ISI PT $475 Base case scenario we expect Gen AI to drive around $82.5 billion in incremental revenue in CY28, a 24% uplift to our previous CY28 revenue estimate. Our ‘bull case’ scenario indicates an incremental revenue opportunity of $142.8bn and $12.07 in incremental EPS. Our updated CY27 incremental AI revenue estimate of $54.6bn is $4.2bn higher than our prior ‘base case’ forecast from June 2023. Copilot is the “most straightforward” AI monetization opportunity for Microsoft.

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