Growth in Microsoft's cloud computing segment could fuel a big run for the software giant in 2020, according to Bank of America.

Analysts at the bank named Microsoft one of its top software picks for 2020, raising the price target on the stock to $200 per share from $162. The new target represents a 27.7% rise from where the stock closed on Christmas Eve.

Microsoft has several key growth drivers, including gaming and LinkedIn, and cloud computing service Azure is poised to make up more than 40% of the company's annual growth in the coming years, according to Bank of America's note to clients.