Benzinga | Jan 18, 2022 08:18AM EST

Here's Why Mizuho Remains Bullish On Microsoft

* Mizuho analyst Gregg Moskowitz lowered the firm's price target on Microsoft Corp (NASDAQ:MSFT) to $350 from $360 and reiterated a Buy rating on the shares. The price target implies an upside of 12.8%.

* Rising yields and more significant inflation concerns have significantly weighed on software stocks over the last month, Broome notes.

* The analyst lowered price targets for most companies to reflect the rising rate environment. However, his basic channel checks have "continued to be very positive."

* Broome adds that the software sector's risk/reward has turned favorable, and investors will likely be rewarded over the medium term or sooner.

* Price Action: MSFT shares traded lower by 1.84% at $304.50 in the premarket session on the last check Tuesday.