Shares of Microsoft Corp. MSFT, +1.07% are up 3.4% in premarket trading Monday after Morgan Stanley analyst Keith Weiss raised his price target on the stock to a Street-high $130, according to FactSet. His previous target was $110. Microsoft's stock closed at $87 on Friday. Weiss is upbeat about the company's margin improvement and increasing public cloud adoption. "A public cloud solution spanning from core Infrastructure Services (e.g. compute, storage), to compelling Platform-as-a-Service capabilities (e.g. data, identity, analytics, machine learning), and up the stack to the application layer (e.g. productivity apps, front office apps, core financials) differentiates the Microsoft public cloud offering from cloud giants Amazon AMZN, +0.18% and Google," he wrote. He predicts that Microsoft will see gross margin improvement over the next three years. Microsoft shares are up 34% over the past 12 months, while the Dow Jones Industrial Average DJIA, -1.84% are up 14%.