Microsoft Climbs as Cowen Initiates It as an Outperform With a $150 Target

The company is well positioned in key markets, including cloud services and software-as-a-service, analyst Nick Yako said.
By Rob Daniel ,

Microsoft (MSFT) - Get Report shares were gently higher after Cowen & Co. initiated the software giant with an outperform rating and $150 target price.

The company can add $100 billion to its revenue by fiscal 2025 because it is well positioned in key markets, including cloud services and software-as-a-service, analyst Nick Yako said in a July 11 research report.

The revenue boost will come, Yako said, as the company maintains its profit margins, thus growing its annual earnings by roughly 15% from fiscal 2020 to fiscal 2025.

Microsoft reported $110.36 billion revenue for fiscal 2018 ended June 30. The current consensus revenue estimates, according to FactSet surveys, are $124.86 billion for fiscal 2019 and $138.79 billion for fiscal 2020.

The company earned $2.13 a share in fiscal 2018. FactSet estimates for fiscal 2019 and 2020 are respectively $4.57 and $5.12 a share.

The Redmond, Wash., company's stock was trading up 0.6% at $138.66 Thursday morning. The $150 target gives it more than 8% upside potential.

Loading ...