Analysts raised Microsoft’s share price target as outperforming
Microsoft (NASDAQ: MSFT) the share price has already recovered significantly since the start of this year. It is one of the most successful stocks in the technology industry. Fortunately, market analysts believe MSFT’s stock price is poised to continue the momentum amid deep penetration of cloud markets.
The MSFT share price has climbed nearly 38% since the start of this year, extending the three-year rally to 134%.
Microsoft’s stock price is currently trading around an all-time high of $ 140. In addition, its good dividend yield and sustainable cash returns make it one of the most defensive socks for retirees.
Analysts Raise Microsoft Share Price Target
Market analysts are showing confidence in the future fundamentals of MSFT. RBC analyst Alex Zukin, for example, raised the MSFT share price target to $ 160 from $ 153. Analysts call it outperforming over several years. The analyst also predicts that MSFT is the “king of the cloud”.
He said, “MSFT is the “king of the cloud” with outperformance dependent on helping businesses move “seamlessly” to the cloud. “
BMO sees pressure on tech companies in the coming days due to macroeconomic headwinds. Despite headwinds, the firm says Microsoft is well positioned to deliver strong returns to investors; the company calls it a defensible stock.
Barclays predicts that MSFT is likely to exceed earnings estimates, which would help prolong stock price momentum.
Double-digit financial growth supports the uptrend
The company has delivered double-digit revenue and profit growth over the past two quarters. Its revenue grew 12% in the last quarter while its operating profit jumped 20% year over year. Its cloud business revenue grew 39% year-over-year to $ 11.0 billion in the last quarter.
The company expects to deliver double-digit revenue and profit growth in the first quarter of 2020. It brought in nearly $ 7 billion to investors last year in the form of dividends and cash returns.
MSFT expects to return significant liquidity in fiscal 2020; the double-digit dividend increase is very likely this year. Overall, several catalysts such as financial growth and cash returns are supporting Microsoft’s stock price.