KeyBanc raises its Microsoft (NASDAQ:MSFT) target from $125 to $141 citing increasing confidence in the cloud and digital strategy.

Analyst Brent Bracelin says the cloud division “has structurally improved Microsoft’s growth trajectory” and the upcoming quarter should be “part of a broader multi-year cloud and digital journey” that could push double-digit annual growth.

The analyst sees subscription-based ARR for Azure topping $12B in the quarter while Office 365 subscription ARR tops $20B.

Bracelin maintains an Overweight rating.

Microsoft reports earnings on April 24. Analysts estimate $29.85B in revenue and $1.00 EPS.

MSFT is up 0.3% pre-market to $121.07.

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