NEW YORK (TheStreet) -- Microsoft (MSFT) - Get Free Report stock is advancing 0.37% to $54.13 in early-afternoon trading on Monday, as the electronics company launches new features for its Office 365 service and is upgraded at Raymond James.
Microsoft will offer unlimited conferencing and other features such as Skype for Business in a bundle that will cost $35 per user per month, the Wall Street Journal reports.
"That's pretty disruptive," Bill Haskins, an analyst at Wainhouse Research, told the Journal. "They have hit the market pretty aggressively on the price point."
Skype for Business, Microsoft's newest tool for online calls and meetings, launches four years after the company purchased Skype for $8.5 billion.
Additionally, Microsoft was upgraded to "strong buy" from "market perform" at Raymond Jamesthis morning. The firm has a $72 price target on the stock.
Microsoft will probably be a "hyperscale" cloud vendor with its Azure platform, and its Office platform "has been stable and appears to be accelerating several years into the transition to cloud," Raymond James said in a note, Barron's reports.
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 -8.93%.
- 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.