Berg also raised his price target to a Wall Street high of $95 from $85, Bloomberg reports. Berg rates the stock a buy. He sees strong demand for Anaplan next year as companies get rid of old software, after disappointing demand during the Covid pandemic.
The heightened demand “will combine with a more profitable operating model and a compelling valuation” to push Anaplan stock up more than its competitors, Berg said.
Anaplan recently traded at $74.72, up 2.75%, and has climbed 42% year to date.
“Microsoft continues to actually benefit from coronavirus-related issues, which helped the company drive material upside compared with its revenue and EPS outlook for the [third] quarter,” he wrote in September.
“Azure remains strong, while consumer-related revenue was once again nicely ahead of our expectations as the global lockdowns continued this quarter. Importantly, commercial bookings and RPO [remaining performance obligations], two forward-looking metrics, both continue to grow well in excess of revenue.”
Further, “we remain impressed with Microsoft's ability to drive revenue and margins at this scale and we believe there is more to come on both fronts,” Romanoff said. “Results continue to underscore our thesis, which centers on customer adoption of hybrid cloud environments with Azure.”
Microsoft recently traded at $225.37, up 1.18%.