Technology giant Microsoft (MSFT) has teamed up with Accenture (ACN) and Duke Energy (DUK) to develop a first-of-its-kind technology platform that will measure methane emissions from natural gas distribution systems.
Shares of Microsoft have gained 42.5% over the past year. (See Microsoft stock charts on TipRanks)
With the exclusively designed new platform with near-real-time data collection, Duke Energy’s field response teams will be able to identify and repair methane leaks in a faster and more efficient manner.
According to the U.S. Environmental Protection Agency, methane accounts for 10% of all U.S. greenhouse gas emissions each year, with the energy sector being one of the biggest sources of emissions.
The latest sensor technology will execute monthly satellite captures and will be able to detect trace levels of methane emissions with greater accuracy.
Notably, the collaboration will help Duke Energy achieve net-zero methane emission targets in its natural gas business by 2030.
The three companies will begin their pilot program in Greenville, S.C., in August to further refine the technology for the identification of methane leakages in Duke Energy’s pipeline system.
Microsoft corporate VP of energy and sustainability, Darryl Willis, commented, “We are looking forward to contributing to this collaboration with Duke Energy, Accenture and Avanade in supporting Duke Energy’s progress to net-zero methane by 2030.”
He further added, “This is a great example of innovation and collaboration coming together to enable industries to more accurately detect, calculate and report on emissions and take action.”
Following the company’s announcement of “substantive” price increases for its Office applications suite last week, Mizuho Securities analyst Gregg Moskowitz increased the price target on Microsoft from $325 to $350 (14.9% upside potential).
Moskowitz commented, “While it will take time to filter through the model, we expect these actions will have a significant financial impact in fiscal year 2023 and beyond.”
He further added, “We maintain our view that Microsoft’s growth opportunities over the medium-term and beyond are greater than many realize.”
Consensus among analysts is a Strong Buy based on 26 unanimous Buys. The average Microsoft price target of $326.92 implies 7.3% upside potential to current levels.
MSFT scores a “Perfect 10” on TipRanks’ Smart Score rating system, indicating that the stock has strong potential to outperform market expectations.
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