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Shares in Nuix Ltd (ASX: NXL) have fallen today following news the company’s Sydney offices have been raided by law enforcement. At close of trading, the Nuix share price was down 2.68%, with shares swapping hands for $2.54.

Nuix announced it had received a search warrant from an unnamed body at around 11.30 am this morning. Until then, its shares had been enjoying a day in the green. An hour later, The Nuix share price had fallen by 3.97%.

Let’s take a closer look at what law enforcement might be doing in the software company’s office.

Warrant issued

According to Nuix’s release, a warrant was issued today to search the company’s Sydney office.

The warrant’s issuer is seeking documents relating to an individual’s affairs. Nuix didn’t name the individual.

Nuix stated the warrant was nothing to do with wrongdoing by the company.

According to reporting by the Australian Financial Review (AFR), the Australian Federal Police (AFP) issued the warrant.

The AFP is reportedly assisting the Australian Securities and Investment Commission (ASIC) in its criminal investigation into Nuix.

The AFR reported the criminal investigation is related to Nuix’s initial public offering (IPO).

As The Motley Fool Australia has previously reported, the corporate watchdog is said to be investigating Nuix and its major shareholder Macquarie Group Ltd (ASX: MQG) over allegations Nuix’s prospectus included inflated forecasts. The investigation reportedly began earlier this month.

ASIC was blasted in Parliament last week over its alleged failure to regulate the software company’s IPO, which resulted in investors losing nearly $3 billion.

Additionally, the AFP began investigating Nuix’s co-founder and former-chair Tony Castagna last month. The investigation relates to an options package reportedly sold to Castagna by Nuix that could have been backdated. The options are said to have been cashed out for $80 million at Nuix’s float.

Nuix share price snapshot

Once hailed as the ASX’s future market darling, Nuix has turned out to be one of its most nail-biting rollercoasters.

Currently, the Nuix share price is 68% lower than it was when it debuted on the ASX in December 2020.

The company has a market capitalisation of around $828 million, with approximately 317 million shares outstanding.

The post Nuix (ASX:NXL) share price falls as warrant to search offices issued appeared first on The Motley Fool Australia.

More reading

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• Sell Nuix, AMP, Pushpay before EOFY? Expert weighs in
• Nuix (ASX:NXL) share price falls amid more reports of options package
• Why we avoid mining and biotech ASX shares: fund manager
• ASX 200 Weekly Wrap: ASX makes it 5 out of 5

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. 

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Nuix Pty Ltd. The Motley Fool Australia owns shares of and has recommended Macquarie Group Limited. The Motley Fool Australia has recommended Nuix Pty Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Costa Group Holdings Ltd (ASX: CGC) share price has been a poor performer in 2021.

Since the start of the year, the horticulture company’s shares are down a disappointing 18%.

Is the Costa share price good value?

One leading broker that believes the Costa share price is good value is Goldman Sachs.

This morning the broker responded to news that the company is acquiring 2PH Farms by reaffirming its buy rating, albeit with a trimmed price target of $4.20.

Based on the latest Costa share price, this represents potential upside of 23.5% over the next 12 months. This potential return stretches to 26% if you include dividends.

What did Goldman say?

Goldman sees a lot of positive in the company’s plan to acquire 2PH Farms.

It commented: “We think the proposed acquisition of 2PH would be a good fit with CGC’s existing citrus operations. Key attractions include: geographic diversification of production; clear organic growth profile to 2025 as trees mature and further planting takes place; access to high growth, premium-price Asian export markets; exclusive perpetual access to plant breeder rights (PBR); long term platform to establish offshore production and/or license PBR.

The broker also notes that it should be a relatively low risk acquisition. This is due to the two companies having a long-established relationship, with Costa marketing 2PH Farms’ citrus domestically for over 10 years.

Goldman also sees attractive long term growth potential from the acquisition due to the age of its orchards. This could be good news for the long term performance of the Costa share price.

Its analysts explained: “CGC expects c.10% accretion in FY21 on a pro forma basis; we see significant potential upside as the 2PH orchards mature. >50% of the 1,474 ha planted are yet to reach maturity and are <5 years old; a further 210 ha is due to be planted by 2023. Based on scenario analysis below, we estimate EPS accretion of c.14-24% in FY25 as production ramps up from the current ~30k tonnes in FY21 to >60k tonnes by 2025.”

All in all, the broker appear to believe the risk/reward on offer with Costa’s shares is compelling and has retained its buy rating.

The post Broker tips Costa (ASX:CGC) share price to shoot higher appeared first on The Motley Fool Australia.

More reading

• ASX 200 down, Woolworths falls, Costa acquires more farms
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• Costa (ASX:CGC) launches $190m capital raising for major acquisition
• What ASX shares might be affected by the UK-Australia trade deal?
• Costa (ASX:CGC) shares dropped 27% in May. Here’s why

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended COSTA GRP FPO. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Empired Ltd (ASX: EPD) share price, up 164% since this time last year, is flat today, with investor’s shrugging off the company’s newly reported government contract.

Below we look at the details of the new contract from the IT services provider.

What did Empired announce?

Empired’s share price didn’t do much today, despite reporting it had been awarded a $9 million digital services contract with the South Australian Government Department of Innovation and Skills (DIS).

DIS works to grow the South Australian economy, supporting people and businesses and helping to increase South Australia’s productivity growth rate.

Empired stated it will provide a range of services that includes replacing and modernising DIS’ core systems, providing program management, as well as digital and data services.

The initial 2-year term of the contract will see work kick off in July. Empired estimates revenue of $5.5 million from the contract in the 2022 financial year and $3.5 million in FY23.

Commenting on the secured contract, Empired’s CEO Russell Baskerville said:

We are delighted to have been selected by DIS as their primary digital transformation partner and are excited to work closely with the department over the coming years to modernise and extend the range and accessibility of digital services provided by the department.

Baskerville added that the company forecasts its Australian East Coast sales results to increase more than 50% in the 2021 financial year compared to FY20.

Jeremy O’Donohue, Empired’s regional sales manager South Australia, said the “South Australian government has backed Australian and South Australian businesses to deliver on what will be a critical technology and business transformation.”

Empired share price snap shot

Empired shares are up an impressive 164% over the past 12 months, handily beating the 24% gains posted by the All Ordinaries Index (ASX: XAO) over that same time.

The Empired share price hit 5-year highs on 26 May, trading for 91 cents per share. Since then shares have retraced a touch, currently trading for 88 cents per share.

Year-to-date, the Empired share price has continued to outperform, up 28% in 2021.

The post Up 164% in 12 months, Empired (ASX:EPD) share price unmoved by contract win appeared first on The Motley Fool Australia.

More reading

• Why the Coles (ASX:COL) share price is pushing higher today
• Why these 2 ASX uranium shares are leaping higher again today
• Endeavour Group (ASX:EDV) share price falls on ASX debut
• Top brokers name 3 ASX shares to sell today
• The Bubs (ASX:BUB) share price has shot up 7% today

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Coles Group Ltd (ASX: COL) share price is on the rise this afternoon, adding 1.94% to sit at $16.85 at the time of writing.

Its advance comes after the successful demerger of supermarket rival, Woolworths Group Ltd (ASX: WOW).

The demerger will see Woolworths shareholders receive one Endeavour Group Limited (ASX: EDV) share for every Woolworths share they own.

What’s driving the Coles share price?

Last Thursday, the Coles share price took a ~4.50% tumble following the company’s strategy update announcement.

The seemingly positive announcement provided updates including progress on sales per square metre, cost cutting and customer satisfaction.

The update also revealed “rapidly growing online grocery sales” with planned investment to further drive its ecommerce sales.

Despite the harsh sell-off last Thursday, Goldman Sachs believes that Coles is well positioned in the short-term, to benefit from consumers returning to supermarkets. The broker had a buy rating for Coles shares on 18 June with a $19.40 target price.

Furthermore, the Australian Bureau of Statistics (ABS) revealed its preliminary May retail trade figures, highlighting a strong uplift in food retailing.

Its results note that Australian retail turnover increased 0.1% in May 2021, with a 1.5% increase in food retailing driving the increase.

More specifically, Victoria experienced a 4.0% lift in food retailing, likely driven by its lockdown starting late May.

The strong performance out of the food retailing industry could be a factor supporting ASX-listed supermarkets.

A long way to go for the Coles share price

Despite pushing out some gains today, the Coles share price is still down about 9% year-to-date.

Coles is making a slow recovery as consumer spending habits normalise. Its management said in response to it third quarter results:

Early signs of normalising consumer behaviour were observed including improved transaction growth, a recovery of COVID-19 impacted categories such as impulse, convenience and food-to-go, Sunday returning to be the busiest trading day of the week and positive indicators of the unwind of ‘local shopping’ as customers returned to shopping centres and CBD stores.

The post Why the Coles (ASX:COL) share price is pushing higher today appeared first on The Motley Fool Australia.

More reading

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• Why Coles (ASX:COL) might be a good ASX share for dividends
• ASX 200 Weekly Wrap: ASX makes it 5 out of 5

Motley Fool contributor Kerry Sun has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended COLESGROUP DEF SET. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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ASX uranium shares have broadly outperformed the market in 2021.

And 2 of the biggest ASX uranium shares are gaining once more, charging higher in late afternoon trade.

The Paladin Energy Ltd (ASX: PDN) share price is up 9.03% at time of writing, trading at 51 cents per share.

The Boss Energy Ltd (ASX: BOE) share price is also running hot, up 6.9% to 15.5 cents per share.

What’s driving investor interest in ASX uranium shares?

Demand for nuclear fuel plummeted following Japan’s earthquake and tsunami driven Fukushima nuclear disaster in 2011. Which spelled bad news for ASX uranium shares in the aftermath.

But as the world is increasingly focused on decarbonising, uranium is back in the spotlight. And prices have been steadily rising since hitting lows of US$24 per pound in February 2020, up to US$32.30 per pound currently.

Atop growing interest in new nuclear power plants in the United States under President Joe Biden’ administration, China has a huge pipeline of nuclear plants in the hopper.

Bloomberg Intelligence analyst Simon Chan points to China as a key growth area for uranium demand, saying the Middle Kingdom could potentially double “its nuclear generation capacity to as much as 100 gigawatts by 2030″.

Although Australia doesn’t currently use any nuclear power, the issue has been touted as a debate item in the next Federal election.

While Australia has amongst the world’s largest, economically viable uranium deposits, it currently only has 2 producing uranium mines, Olympic Dam, owned by BHP Group Ltd (ASX: BHP), and Four Mile, owned by Quasar Resources.

But as indicated by Boss Energy’s latest feasibility study, released on Monday, its Honeymoon uranium mine in South Australia could become a third major player.

As Bloomberg notes, Honeymoon “could add an extra 2.45 million pounds (1,225 tons) of production a year to a market, which currently requires around 67,500 tons a year, according to the World Nuclear Association”.

Commenting on that study, Boss Energy Energy’s managing director Duncan Craib said, “This study demonstrates that Boss is perfectly placed to capitalise on a strengthening uranium market with an existing plant and mine in a tier-one location with low costs and strong financial returns.”

The ASX uranium share is also banking on a significantly higher price for uranium than the current spot price. In defence of that assumption, Boss Energy wrote:

Boss considers a base case price of US$60/lb U3O8 [uranium] over the LOM is reasonable given that current spot and term uranium prices are well below the price required to guarantee viability of a large proportion of the world’s existing production.

Uranium analysts predict that a long-term spot price in the mid US$40’s will incentivise restart of idled production while a spot price closer to US$60/lb will be needed for most new mines.

In an interview with Bloomberg, Craib added, “There is significant uncovered demand in the coming decades – and post-2023, primary supply to meet that demand is severely limited… We see activity picking up in the third quarter and continuing into the next calendar year.”

If uranium prices rise in line with Boss’s projects, that should offer strong tailwinds to ASX uranium shares.

Boss Energy and Paladin share price snapshot

ASX uranium shares Boss Energy and Paladin have both soundly beaten the returns posted by the All Ordinaries Index (ASX: XAO) this year.

So far in 2021, Boss Energy shares are up 60%, and Paladin shares are up a whopping 94%, compared to a gain of 9% on the All Ords.

The outperformance goes back a full 12 months too, with Boss Energy up 158% since this time last year and Paladin shares up 405%.

The post Why these 2 ASX uranium shares are leaping higher again today appeared first on The Motley Fool Australia.

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• Why are blue-chip ASX 200 shares selling off today?

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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Endeavour Group Limited (ASX: EDV) shares finally made their way onto the ASX today. This comes after the Woolworths Group Ltd (ASX: WOW) decided to spin off its liquor and hotels business.

The Endeavour share price opened this morning at $6.50, before falling to $6.10 at the time of writing.

Why did Woolworths demerge Endeavour?

Back in 2019, Woolworths announced it planned to demerge from its 85.4% holding in Endeavour. Although the restructure was completed in 2020, COVID-19 forced the postponement of the proposer demerger until 2021.

The retail conglomerate said the reason for the split was to maximise Woolworths’ shareholder value over time. In addition, this would also create a simpler operating model which focuses on food and everyday needs.

As a result of the split, eligible shareholders receive 1 new Endeavour share for every share owned in Woolworths. This gives Woolworths and long-term joint venture partner, BMG, a 14.6% remaining interest each in Endeavour.

Managing director and CEO of Endeavour Steve Donohue said:

This is a very significant day for Endeavour Group’s 28,000 team members throughout Australia, who are united around our purpose of creating a more sociable future together, and for our partners, customers and many other stakeholders.

We are excited about the future as we continue to focus on growth and building on the successful platform we have in place through our portfolio of trusted retail brands, including Dan Murphy’s and BWS, as well as Australia’s largest portfolio of hotels including many Australian icons such as Brisbane’s Breakfast Creek Hotel and the Young & Jackson Hotel in Melbourne.

More on the Endeavour share price

Endeavour holds a portfolio of 332 hotels, 1,775 liquor licenced venues, 12,364 poker machines and 290 TABs and KENO outlets. As a whole, this makes the company one of the largest gaming operators and owner of poker machines in Australia.

At today’s price, Endeavour has a market capitalisation of roughly $10.8 billion, with almost 1.8 billion shares on its registry.

The post Endeavour Group (ASX:EDV) share price falls on ASX debut appeared first on The Motley Fool Australia.

More reading

• Why Catapult, Earlypay, Nuix, & Woolworths are tumbling lower
• ASX 200 down 0.25%: Woolworths sinks, Afterpay jumps, Westpac NZ update
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• 5 things to watch on the ASX 200 on Thursday
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Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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Yesterday I looked at three ASX shares that brokers have given buy ratings to this week.

Unfortunately, not all shares are in favour with them right now. Three ASX shares that have just been given sell ratings by brokers are listed below. Here’s why these brokers are bearish on them:

A2 Milk Company Ltd (ASX: A2M)

According to a note out of Citi, its analysts have retained their sell rating and $5.85 price target on this infant formula company’s shares. The broker has been looking at the key Chinese market and notes that domestic brands are growing in popularity on ecommerce platforms. Citi believes this demonstrates that Chinese consumers are shifting their presence to domestic producers ahead of a2 Milk and other western brands. The a2 Milk share price is trading at $6.11 today.

Pro Medicus Limited (ASX: PME)

Analysts at Morgans have downgraded this health imaging company’s shares to a reduce rating with an improved price target of $49.69. According to the note, the broker made the move on valuation grounds following a strong gain in recent weeks. While Morgan acknowledges that Pro Medicus is a high quality company, it suggests investors wait for a better entry point. The Pro Medicus share price is fetching $56.94 this afternoon.

St Barbara Ltd (ASX: SBM)

A note out of Macquarie reveals that its analysts have retained their underperform rating and $1.70 price target on this gold miner’s shares. Macquarie notes that the company is starting a study at its Leonara site to investigate a new processing plant. It is also looking at the development of the Tower Hill and Harbour Lights resources. The broker expects this to require significant capital expenditures. Outside this, it has concerns that St Barbara’s impending FY 2022 guidance and outlook for Gwalia could fall short of market expectations. The St Barbara share price is trading at $1.77 today.

The post Top brokers name 3 ASX shares to sell today appeared first on The Motley Fool Australia.

More reading

• Why Afterpay, Core Lithium, De Grey Mining, & Pro Medicus are storming higher
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• ASX 200 Weekly Wrap: ASX makes it 5 out of 5
• These were the best-performing ASX 200 shares last week

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Pro Medicus Ltd. The Motley Fool Australia owns shares of and has recommended Pro Medicus Ltd. The Motley Fool Australia has recommended A2 Milk. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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Shares in Bubs Australia Ltd (ASX: BUB) are soaring today, despite no news having been released from the company. At the time of writing, the Bubs share price is 48 cents – 6.74% higher than its previous close.

The last time we heard from the formula and baby food maker was Friday last week when the company announced it was breaking into the US formula market.

Let’s take a look at the news Bubs announced last week.

Latest news

On Friday last week, Bubs announced some of its products are to be stocked in the US by Walmart Inc‘s (NYSE: WMT) online platform and Amazon.com, Inc. (NASDAQ: AMZN).

The company’s products are already on the Australian Amazon site.

Come September, US customers will be able to get their hands on Bubs’ Aussie Bubs formula products from the two retailers.

The news saw the Bubs share price rocket 28.95% higher on Friday.

Between then and yesterday’s close, shares in Bubs dropped 9.09%. Today, they’ve skyrocketing once more.

According to the Bubs’ release, the US infant and toddler formula market is worth US$5.1 billion annually.

After its introduction, Bubs will be providing the US market’s only Australian goat milk formula product.

The good news was a welcome change for Bubs, which has faced challenges due to COVID-19.

Before Australia’s tough border restrictions were implemented to stave off the global pandemic, a large portion of Bubs’ business came from the daigou market.

This is a similar story to those of many ASX-listed companies.

Bubs share price snapshot

The Bubs share price needs all the good news it can get as it battles a tough year on the ASX.

Currently, shares in Bubs have dropped 20% year to date. They have also fallen 52% since this time last year.

The company has a market capitalisation of around $272 million, with approximately 612 million shares outstanding.

The post The Bubs (ASX:BUB) share price has shot up 7% today appeared first on The Motley Fool Australia.

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Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Amazon. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long January 2022 $1,920 calls on Amazon and short January 2022 $1,940 calls on Amazon. The Motley Fool Australia has recommended Amazon and BUBS AUST FPO. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The S&P/ASX 200 Index (ASX: XJO) is having a rather flat day of trading this Thursday. At the time of writing, the ASX 200 is down 0.15% to 7,284 points.

Let’s take a look at some of the most heavily traded ASX 200 shares on the stock market today.

3 heavily traded ASX 200 shares today

Telstra Corporation Ltd (ASX: TLS)

ASX telco Telstra is one of the most heavily traded ASX 200 shares so far today, with a substantial 8 million shares changing hands so far.

There has been no major news or announcements out of Telstra today that would easily explain this investor interest.

The Telstra share price has been rather volatile during today’s trading. It’s currently down 0.56% to $3.58 a share after touching a new 52-week high of $3.63 earlier this week.

It dipped after the market open this morning, then returned to its open price, then fell again.

Zip Co Ltd (ASX: Z1P)

Zip Co is another ASX 200 share that is bouncing around on the ASX boards today, with 11.82 million Zip shares swapping hands so far.

The Zip share price is currently up 0.52% to $8.65, defying the broader market sentiment so far this Thursday. This follows the hefty 6.7% gain that the buy now, pay later (BNPL) company made yesterday.

It was even better this morning too. Upon market open, Zip shares popped all the way up to $9.11 before settling to the current share price.

As we covered yesterday, Zip shares don’t seem to be reacting to anything concrete but there has been improving sentiment in the tech space this week.

Pilbara Minerals Ltd (ASX: PLS)

Pilbara is the most active ASX 200 share today with 14.03 million shares traded so far.

This continues a streak that has been going for a while now. Pilbara has been on a rather wild ride in recent times.

The lithium miner is up 13.75% over the past 5 trading days, and up a hefty 43.24% over the past month. It’s had a whopping 513% gain over the past 12 months.

Just today, the Pilbara share price has risen another 3.83% to $1.55 per share, at the time of writing. It hit a new all-time high of $1.58 this morning.

As we discussed yesterday, another factor at play with the Pilbara share price could be the drilling update that the company released yesterday afternoon.

The post Here are 3 of the most heavily traded ASX 200 shares today appeared first on The Motley Fool Australia.

More reading

• The Pilbara Minerals (ASX:PLS) share price smashes another record high
• ASX copper shares up and down as copper price bounces back
• The Zip share price (ASX:Z1P) has risen 23% in June, is it a buy?
• ASX 200 down 0.25%: Woolworths sinks, Afterpay jumps, Westpac NZ update
• 2 buy-rated ASX dividend shares with 4%+ yields

Motley Fool contributor Sebastian Bowen owns shares of Telstra Corporation Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended ZIPCOLTD FPO. The Motley Fool Australia owns shares of and has recommended Telstra Corporation Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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Thanks to an increase in its share price, the Microsoft Corporation (NASDAQ: MSFT) broke the $2 trillion market capitalisation barrier last night.

While it is not the first company to do so, Microsoft joins an elite and select club. Population? Two.

That’s right, only Microsoft and Apple Inc (NASDAQ: AAPL) can currently lay claim to ‘multi-trillion’ status.

What’s pushing the Microsoft share price higher?

It may come as a surprise, but Microsoft has outperformed a few of its ‘FAANG’ friends so far this year including Amazon.com Inc (NASDAQ: AMZN), Netflix Inc (NASDAQ: NFLX), and Apple.

Most people will be familiar with Microsoft’s software and consumer electronics, whether that be the operating system on your computer, gaming console, or laptop. However, Business Insider suggests analysts see the rise in value fuelled by the company’s lead in cloud computing.

While less known to consumers, the company’s cloud-computing platform Azure is prominent among other companies. Approximately 95% of Fortune 500 companies rely on Azure, according to Microsoft’s 2020 full year report.

Wedbush Securities managing director and analyst Dan Ives revised his 12-month price target for the tech giant yesterday. The Microsoft share price target was increased from $310 to $325 with an ‘outperform’ rating.

Ives justified the increased price target, stating:

With workforces expected to have a heavy remote focus, we believe the cloud shift is just beginning to take its next stage of growth globally. We believe this disproportionally benefits the cloud stalwart out of Redmond, as (Microsoft CEO Satya) Nadella & Co is so well positioned in its core enterprise backyard to further deploy its Azure/Office 365 as the cloud backbone and artery.

Cloud everything

Analysts are bullish on Microsoft’s cloud potential following an unprecedented year that has potentially brought forward the adoption curve.

Microsoft’s own commercial cloud platform experienced a 36% year-over-year increase to $50 billion in revenue in 2020 — yes, you read that correctly, $50 billion, with a ‘B’.

Many companies are shifting to cloud-based processing to take advantage of the scalability of processing power and storage. By Microsoft’s own estimates more than 50 billion devices will come online by 2030 seeking a cloud-based platform to operate from.

The Microsoft share price has gained 34% over the past 12 months. In after-hours trade the companies shares have settled at US$265.28 a piece.

The post Microsoft (NASDAQ:MSFT) share price lifts company into $2 trillion club appeared first on The Motley Fool Australia.

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John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Teresa Kersten, an employee of LinkedIn, a Microsoft subsidiary, is a member of The Motley Fool’s board of directors. Motley Fool contributor Mitchell Lawler owns shares of Apple. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Amazon, Apple, Microsoft, and Netflix. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long January 2022 $1,920 calls on Amazon, long March 2023 $120 calls on Apple, short January 2022 $1,940 calls on Amazon, and short March 2023 $130 calls on Apple. The Motley Fool Australia has recommended Amazon, Apple, and Netflix. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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