By Dave Sebastian

 

Microsoft Corp.'s (MSFT) shares rose 2% in trading Friday after it posted record revenue in the latest quarter and profit that topped expectations.

The technology company had the second-most gains, after Boeing Co. (BA), in the Dow Jones Industrial Average on Friday morning.

Analysts also raised Microsoft's price target. Citigroup Inc. (C) raised its per-share target to $152 a share from $147 a share. BMO Capital Markets raised the per-share target to $160 from $153. Canaccord Genuity Group Inc. (CF.T) raised its per-share target from $145 to $155.

Shares on Friday were trading at $138.76. The stock is up nearly 37% so far this year.

Driving Microsoft's revenue growth were its Azure, Office 365, Gaming and Marketing divisions, as well as legacy products such as on-premise Office software and Windows, Canaccord analysts said in a note.

"Consistent growth in these businesses was not something that we expected a few years ago," the analysts said, adding, "The point is that we do not see some sort of cliff event in which Microsoft's legacy business rolls over hard, and like the large majority of people who follow this company, we are in the consensus that the growth drivers will continue to deliver 20%+ growth for about half of the business."

 

Write to Dave Sebastian at dave.sebastian@wsj.com

 

(END) Dow Jones Newswires

July 19, 2019 11:07 ET (15:07 GMT)

Copyright (c) 2019 Dow Jones & Company, Inc.
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