Connect with us

    Hi, what are you looking for?

    Stocks

    Financial Analysts Alter Microsoft Stock Price Prediction

    The recent drop in leading technology equities also impacted Microsoft (NASDAQ: MSFT) stocks, which saw a 4.23% decline over the past five trading sessions. However, the stock has since bounced back from some of the losses, currently showing pre-market increases of 0.58%.

    Despite the recent transition from large-cap to small-cap stocks, analysts still favor MSFT stocks due to its strong fundamentals, notable market share, and growth prospects.

    Evaluation of MSFT Stock by Wall Street

    The endorsement for this tech giant from Wall Street analysts is evident in the latest target prices set by prominent institutions ahead of its Q2 earnings release on July 30.

    In the most recent target price adjustment on July 18, TD Cowen showed confidence in Microsoft stocks, raising the target price from $470 to $495 while reiterating a “buy” suggestion. The firm’s analysis underscores the consistent performance of Microsoft’s Office 365 Commercial unit, predicting a 14% growth in constant currency (cc).

    Even with a 15% cc growth in the previous quarter, TD Cowen expects Microsoft to report a strong quarter, with vendor consolidation and increased Average Revenue Per User (ARPU) from upgrades being positive factors.

    The day before, on July 17, Bank of America increased its target price for MSFT to $510 from $480, pointing to robust performance in Azure cloud services and positive feedback on the Copilot feature.

    Analysts emphasized the strong showing of Microsoft partners, with many meeting or exceeding expectations in anticipation of Q2 FY24 results on July 30. They anticipate a 31.5% year-over-year growth in Azure, with an 8% contribution from AI workloads, surpassing the initial 30.5% projection.

    Positivity towards MSFT Stock Persists

    On the same day, Citi reiterated its favorable outlook on the software leader by maintaining a “buy” rating and a $520 target price. Expectations are high for Microsoft’s forthcoming second-quarter results, with optimistic forecasts for both revenue and earnings.

    Despite an 11% rise in shares since the last earnings announcement, Citi believes the upcoming results will showcase the company’s sustained growth path, even if they do not serve as a major catalyst.

    July 16 saw Mizuho Securities revising its perspective on Microsoft stocks, raising the target price to $480 from $450 and retaining an “outperform” rating. This modification follows Microsoft’s fiscal Q3 earnings report, which disclosed total revenue of $61.9 billion, surpassing analysts’ estimate of $60.8 billion.

    With a unanimous “strong buy” rating from 35 analysts and an average target price of $504.12, indicating a potential upside of 13.66%, MSFT shares continue to be preferred assets among Wall Street analysts.

    Image Source: Below the Sky / Shutterstock

    You May Also Like

    Stocks

    As gasoline and vitality prices improve world wide and particularly in the US, the pursuit for renewable vitality sources has change into much more...

    Stocks

    Kellogg, one of many largest suppliers of packaged meals in the US and the world, has maintained a usually consolidated management of all of...

    Stocks

    As fears of inflation are affecting your entire United States financial system, one sector that’s taking over the brunt of the injury is the...

    Stocks

    Again in April, Tesla and SpaceX CEO Elon Musk made main waves when he introduced his intent to buy the social media platform Twitter...