Microsoft (MSFT) - Get Report has been one of the hottest stocks over the past couple of years, but the shares still have more room to run, according to a bullish note from Evercore that raised the stock's price target to a Wall Street high.
Evercore raised its price target on the stock to $212 from $190 as analysts at the firm wrote that the company still has multiple growth drivers even though it “is currently firing on all cylinders.”
The biggest tailwind for the company is its Azure cloud computing business.
“Hybrid cloud portfolio, non-conflicted business model, and enterprise footprint are structural advantages that will allow Azure to sustain a competitive advantage,” the firm wrote. Evercore maintained its outperform rating on the stock.
Microsoft shares have climbed more than 70% over the past 12 months and have more than doubled over the past 24 months.
In late January, the company reported strong second-quarter results that topped analysts' estimates.
The Redmond, Washington-based company reported earnings of $1.51 a share and a 14% increase in revenue to $36.9 billion. Analysts were expecting the company to report earnings of $1.32 ashare on revenue of $36.67 billion.
The stock gained 1.8% to $171.07 in after-hours trading Wednesday. Microsoft has been on a roll over the past 12 months, climbing more than 60% in the period.
“We are innovating across every layer of our differentiated technology stack and leading in key secular areas that are critical to our customers’ success,” said CEO Satya Nadella.
Microsoft shares rose 0.43% in trading Thursday to $185.50.