Pacific Crest on Tuesday predicted Microsoft would exceed earnings estimates from Wall Street. The research firm reiterated an overweight rating on the tech giant.
"We expect another solid quarter when Microsoft releases earnings results this Thursday, which should reinforce our bullish stance on the company's progress in pivoting from laggard to leader in cloud, digital and artificial intelligence," equity analyst Brent Bracelin wrote in a note to clients.
He believes Microsoft's cloud business could become a game changer for the company in the years ahead, with the potential for organic revenue growth and margins to continue to improve.