Microsoft (MSFT) Earnings Estimates Raised at BMO Capital
NEW YORK (TheStreet) -- Shares of Microsoft (MSFT) - Get Report are down by 0.14% to $53.66 in mid-morning trading on Friday, as the company's fiscal 2016 fourth quarter and fiscal 2017 earnings estimates were raised to 60 cents from 59 cents, and to $2.74 from $2.65, respectively, at BMO Capital earlier today.
The firm maintained a $57 price target with an "outperform" rating on the stock, as it believes the company's "valuation is attractive on a FCF basis but less so on a P/E basis."
But, BMO mentioned concerns that the company is "generating all operating profit growth in More Personal Computing (MPC), since we don't think this is sustainable." Additionally, the firm doesn't think Microsoft's acquisition of LinkedIn (LNKD) will create shareholder value.
"We believe that MSFT is well positioned for the long term, but see more limited catalysts near-term given the impact of mix."
Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author. TheStreet Ratings has this to say about the recommendation:
We rate MICROSOFT CORP as a Buy with a ratings score of B+. This is driven by a few notable strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its reasonable valuation levels, good cash flow from operations, solid stock price performance, largely solid financial position with reasonable debt levels by most measures and expanding profit margins. We feel its strengths outweigh the fact that the company has had sub par growth in net income.
You can view the full analysis from the report here: MSFT
data by