Benzinga | Dec 22, 2021 06:09AM EST

Read Why SMBC Nikko Is Bullish On Microsoft

* SMBC Nikko analyst Steve Koenig initiated coverage of Microsoft Corp (NASDAQ:MSFT) with an Outperform rating and $410 price target.

* The price target implies an upside of 28%. Microsoft is successfully transitioning its customers to the cloud.

* Koenig said that Microsoft is "well-positioned at the center of the big secular trends in software" and is primed to capitalize on IT spending priorities.

* Given Azure's continued momentum, Koenig sees the Microsoft cloud unit being "within spitting distance of AWS for public cloud market leadership by 2025."

* Price Action: MSFT shares closed higher by 2.31% at $327.29 on Tuesday.