Microsoft (MSFT) - Get Report on Wednesday received a price-target upgrade from Wedbush Securities analyst Dan Ives as the technology software and services giant’s market capitalization surpassed $2 trillion.
Ives raised his one-year price target on Microsoft to $325 from $310 and maintained his outperform rating on the shares, saying in research note that the Redmond, Wash.-based company remains his team’s favorite large-cap cloud play.
“While many tech stocks overall are all being lumped together as part of the WFH trade, we believe the growth story at Microsoft is not slowing down as more enterprises/governments head down this cloud path over the coming years,” Ives wrote.
Ives’s upgrade comes as Microsoft surpasses $2 trillion in market value for the first time. At last check, the stock was up 0.18% at $265.98. Year to date, the shares have risen 22%.
TheStreet's Jim Cramer said earlier this week that he feels Microsoft shares are still undervalued, despite their recent upward moves.
(Microsoft) “has moved up on a delayed action to its great quarter,” Cramer said. “It remains inexpensive despite its historic growth rate and its consistency. And do I care that [CEO Satya] Nadella was named chairman? Hey, listen, we have stocks that go up like that, naming guys chairman every day of the week.”
Meantime, Microsoft is set to unveil a new version of its iconic Windows software on June 24, according to an invitation sent to reporters.
The fresh software reportedly includes design changes, additional capabilities for creators and developers on the Windows app store, and easier techniques for users to connect with communities.