Benzinga | Jan 6, 2022 11:47AM EST

Jefferies Bumps Up Price Target On This Tech Giant By 7%; Remains Bullish

* Jefferies analyst Brent Thill raised the price target on Microsoft Corp (NASDAQ:MSFT) to $400 from $375 and kept a Buy rating on the shares. The price target implies a 26.7% upside.

* Despite a "massive 39% outperformance" versus the iShares Expanded Tech-Software Sector ETF in 2021 from Microsoft, he continues to see the potential in the stock as valuation provides downside protection.

* However, he notes that revenue deceleration is likely after "phenomenal" 22% year-over-year growth in fiscal Q1 of FY22.

* Price Action: MSFT shares traded lower by 0.23% at $315.64 on the last check Thursday.