Analyst Super-Bullish on Microsoft Corporation (MSFT) Cloud Business Potential

We can add Atlantic Equities into the camp of those that are excited about what the future holds for Microsoft Corporation’s (NASDAQ:MSFT) cloud business. The firm has checked in with a bullish take and price target for the tech giant.

CNBC shares the firm’s thoughts on Microsoft.

Microsoft’s transition into cloud-based technology opens up new, lucrative markets for the software giant, according to Atlantic Equities, which assumed coverage Monday at overweight.

The company’s recent organizational changes to better capitalize on its cloud computing business – known as Azure – is set to be a key profit driver, analyst James Cordwell told clients in a note. The firm’s previous rating under another analyst was neutral.

The firm has placed a price target of $125 on shares of Microsoft. In a note to clients, Crodwell explained why he’s feeling so bullish on the tech titan these days.

“Azure has replaced Windows as the platform underpinning Microsoft’s enterprise offering, and we forecast it exceeding $100 billion revenue over the next decade,” he wrote. “With Office 365, Microsoft has already established a strong position in the software as a service market and there remains robust growth potential as the greater accessibility of the cloud delivery model continues to drive expansion in the user base and customers steadily upgrade from basic packages.”

Microsoft Corporation shares fell $0.30 (-0.30%) in premarket trading Monday. Year-to-date, MSFT has gained 18.02%, versus a 3.40% rise in the benchmark S&P 500 index during the same period.

MSFT currently has a StockNews.com POWR Rating of A (Strong Buy), and is ranked #1 of 65 stocks in the Software – Application category.