Piper Sandler analyst Brent Bracelin raised his price target for Microsoft (MSFT) to $190 from $158 and maintains an Overweight rating on the shares.

The stock closed Wednesday down 80c to $165.70. 2020 could be the "defining year for the next decade" at Microsoft, Bracelin tells investors in a research note.

The company has a "unique opportunity" to further elevate its cloud leadership position through share gains and "needle-moving" acquisitions, adds the analyst. With $67B in net cash and investments and another $200B of future operating cash flows over the next three years, acquisitions "could take center stage in 2020," contends Bracelin. He believes Microsoft has "many options to enhance its position as a trusted enabler of the digital enterprise" beyond Azure, O365, LinkedIn, and GitHub. He cites the company's cloud, gaming, and security potential for the target raise and recommends continuing to the shares as a core cloud holding.