Microsoft (MSFT) Stock Climbing in Pre-Market Trading on Price Target Boost
NEW YORK (TheStreet) -- Shares of Microsoft (MSFT) - Get Report are up by 0.36% to $53.70 in pre-market trading on Wednesday, after the company's price target was increased to $60 from $54 by analysts at CLSA.
The price target represents a potential 19.2% upside from the stock's current price.
The firm has maintained its "outperform" rating on Microsoft stock.
Additionally, analysts at Piper Jaffray have a $64 price target on the company after reconfirming the stock's "overweight" rating yesterday. Microsoft has a consensus 12-month price target of $54.50, according to data compiled by Thomson Reuters.
Separately, TheStreet Ratings team rates MICROSOFT CORP as a Buy with a ratings score of A. TheStreet Ratings Team has this to say about their recommendation:
We rate MICROSOFT CORP (MSFT) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its solid stock price performance, increase in net income, reasonable valuation levels, expanding profit margins and good cash flow from operations. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook.
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The stock has not only risen over the past year, it has done so at a faster pace than the S&P 500, reflecting the earnings growth and other positive factors similar to those we have cited here. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
- The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and the Software industry average. The net income increased by 1.8% when compared to the same quarter one year prior, going from $4,540.00 million to $4,620.00 million.
- The gross profit margin for MICROSOFT CORP is currently very high, coming in at 71.80%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 22.67% is above that of the industry average.
- Net operating cash flow has slightly increased to $8,594.00 million or 2.87% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -10.51%.
- You can view the full analysis from the report here: MSFT
Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of Jim Cramer, TheStreet or any of its contributors.