Microsoft(US:MSFT) Zhao Yin Guo Ji·2025-05-30 03:23Investment Rating - The report maintains a "Buy" rating for Microsoft (MSFT US) with a target price of $510.30, indicating a potential upside of 11.3% from the current price of $458.68 [3][4]. Core Insights - Microsoft aims to build an open AI agent network, transitioning from isolated AI models to interconnected agents with distinct identities, facilitated through Azure and Windows platforms [1][10]. - The report highlights three core trends from the Build 2025 conference: 1) Multi-model and multi-agent collaboration; 2) Low-cost inference on the edge; 3) Unified identity governance and observability [1]. - Microsoft continues to strengthen its position in AI cloud services and applications, supported by its extensive developer and enterprise customer ecosystem [1][13]. Financial Overview - For FY23A, Microsoft reported sales revenue of $211,915 million, with a year-on-year growth of 6.9%. Projections for FY24A and FY25E are $245,122 million and $283,148 million, reflecting growth rates of 15.7% and 15.5% respectively [9][27]. - Net profit for FY23A was $72,361 million, with a projected increase to $88,136 million in FY24A and $101,947 million in FY25E, showing year-on-year growth rates of 21.8% and 15.7% [9][27]. - Earnings per share (EPS) are expected to rise from $9.72 in FY23A to $11.86 in FY24A and $13.75 in FY25E [9][27]. Shareholder Structure - Vanguard holds 8.7% and BlackRock holds 7.2% of Microsoft's shares, indicating significant institutional investment [5]. Stock Performance - Over the past month, Microsoft's stock has returned 16.0%, outperforming the market by 5.6% [6].