Microsoft Corporation Stock Forecast:
According to 41 analysts, the average analyst target price for Microsoft Corporation over the next 12 months is USD 288.66. The average analyst rating for Microsoft is Strong Buy. Stock Target Advisor’s analysis is Bullish, based on 11 positive signals and 4 negative signals. The stock price for Microsoft Corporation at the last closing was USD 289.84, with a change of -0.60% over the past week, +14.15% over the past month, and +0.77% over the last year.
Analysts Coverage Change:
- Stifel Nicolaus maintains a “Buy” rating on Microsoft Corp. and raises the price target to $310 from $290 on the the company’s stock.
- BMO Capital Markets maintains a “Market-Perform” rating on Microsoft Corp. and raises the price target to $310 from $305.
Positive Fundamentals:
Investors like Microsoft Corp. stock for its high market capitalization, superior risk-adjusted returns, low volatility, high dividend returns, superior return on equity, capital utilization, and assets, positive cash flow and free cash flow, superior earnings and dividend growth compared to its sector. These factors suggest that Microsoft is a stable and profitable company that may offer both income and growth opportunities to investors.
Negative Fundamentals:
Investors are not favorable towards Microsoft Corp stock due to below-median total returns over the past five years and overpriced valuations when compared to its peers on multiple metrics. The stock is trading high on a price to book value basis, price to cash flow basis, and price to free cash flow basis, and is priced above the median for its sectors. Investors are advised to exercise caution before considering buying the stock.
FA Score (Fundamental Analysis):
The fundamental analysis of Microsoft Corp is “Bullish” with a FA score of 7.3 out of 10, where 0 is very bearish and 10 is very bullish.
About Microsoft Corp.:
Microsoft Corporation is a global company that develops, licenses, and supports software, services, devices, and solutions. It operates in three segments: Productivity and Business Processes, Intelligent Cloud, and More Personal Computing. The Productivity and Business Processes segment offers various products like Office, SharePoint, Microsoft Teams, Skype, and Dynamics 365. The Intelligent Cloud segment provides cloud-based services like Azure and enterprise AI solutions. The More Personal Computing segment offers Windows operating system, Surface, gaming and entertainment consoles, and Bing. Microsoft sells its products through OEMs, distributors, and resellers, and also directly through digital marketplaces, online stores, and retail stores. The company was founded in 1975 and is headquartered in Redmond, Washington.
