- Morgan Stanley flags a high bar for Microsoft's Q3 earnings report on October 28, following a 40% rally since the last earnings release.
- Morgan Stanley says Microsoft needs mid-40% Azure growth, better Microsoft 365 and Copilot monetization, and disciplined operating expenses to sustain momentum.
- Morgan Stanley keeps a Buy-equivalent overweight rating and $600 price target, citing favorable risk-reward despite the elevated bar.
Quotes
“Microsoft needs to achieve mid-40% growth in its Azure cloud computing unit”
“Microsoft needs to show Azure growth in the mid-40s range”