This article first appeared on GuruFocus.

Microsoft (NASDAQ:MSFT) received a rating upgrade from Stifel, with analyst Brad Reback moving the stock to Buy from Hold and lifting the price target to $575 from $530.

The firm sees room for Microsoft to maintain revenue growth in the mid-to-upper teens. Reback pointed to improving efficiency across Azure, additional data-center capacity and a larger contribution from its OpenAI relationship as factors that could support cloud growth.

Azure remains a key part of the outlook. Microsoft has faced capacity limitations in its cloud business, but Stifel expects new infrastructure and efficiency gains to help the company capture more…