Mizuho Is Bullish on Microsoft’s (MSFT) Cloud Businesses

Microsoft’s (MSFT) cloud-infrastructure unit, Azure, is well-positioned to deliver “impressive..growth” over the long term, Gregg Moskowitz, an analyst at Japanese bank Mizuho, wrote recently.

Moskowitz has a $475 price target and an Outperform rating on MSFT.

A development team working together to create the next version of Windows.

Azure and Microsoft 365 Are Seen as Positive Catalysts for MSFT

Azure should benefit from “public/hybrid cloud migration, (the) digital transformation of complex workflows, and…GenAI,” Moskowitz believes.

Meanwhile, Microsoft 365, the cloud-powered version of Office, is very widely used by companies and government agencies, the analyst reported. Moreover, the cloud-powered product’s average revenue per user is likely to rise going forward, according to Moskowitz.

Other Positive Drivers for MSFT

Moskowitz is impressed by MSFT’s progress on the GenAI front, and he sees the company as better able to exploit the technology than any other software vendor.

Finally, the Street is underestimating the tech giant’s long-term, revenue-growth outlook, and the firm is likely to keep its costs under control, according to the analyst.

The Recent Price Action of MSFT Stock

In the last month, the shares have dropped 7%, while they are down 15% in the last three months.

In the last month, the shares have dropped 12%, while they have given back 17% in the last three months.

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Disclosure: None. This article is originally published at Insider Monkey.