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Wall Street JournalCracking The Code: Understanding Analyst Reviews For Microsoft
Ratings for Microsoft (NASDAQ:MSFT) were provided by 16 analysts in the past three months, showcasing a mix of bullish and bearish perspectives.
The table below provides a snapshot of their recent ratings, showcasing how sentiments have evolved over the past 30 days and comparing them to the preceding months.
| Bullish | Somewhat Bullish | Indifferent | Somewhat Bearish | Bearish | |
|---|---|---|---|---|---|
| Total Ratings | 5 | 9 | 2 | 0 | 0 |
| Last 30D | 0 | 2 | 0 | 0 | 0 |
| 1M Ago | 2 | 0 | 2 | 0 | 0 |
| 2M Ago | 0 | 1 | 0 | 0 | 0 |
| 3M Ago | 3 | 6 | 0 | 0 | 0 |
In the assessment of 12-month price targets, analysts unveil insights for Microsoft, presenting an average target of $503.56, a high estimate of $600.00, and a low estimate of $470.00. A 0.6% drop is evident in the current average compared to the previous average price target of $506.62.
Breaking Down Analyst Ratings: A Detailed Examination
A comprehensive examination of how financial experts perceive Microsoft is derived from recent analyst actions. The following is a detailed summary of key analysts, their recent evaluations, and adjustments to ratings and price targets.
| Analyst | Analyst Firm | Action Taken | Rating | Current Price Target | Prior Price Target |
|---|---|---|---|---|---|
| Jackson Ader | Keybanc | Raises | Overweight | $505.00 | $490.00 |
| Brent Bracelin | Piper Sandler | Lowers | Overweight | $470.00 | $485.00 |
| Kash Rangan | Goldman Sachs | Lowers | Buy | $500.00 | $515.00 |
| Joel Fishbein | Truist Securities | Maintains | Buy | $600.00 | $600.00 |
| Gil Luria | DA Davidson | Maintains | Neutral | $475.00 | $475.00 |
| Gil Luria | DA Davidson | Maintains | Neutral | $475.00 | $475.00 |
| Keith Weiss | Morgan Stanley | Maintains | Overweight | $506.00 | $506.00 |
| Gil Luria | DA Davidson | Lowers | Buy | $475.00 | $500.00 |
| Keith Weiss | Morgan Stanley | Lowers | Overweight | $506.00 | $520.00 |
| Daniel Ives | Wedbush | Maintains | Outperform | $550.00 | $550.00 |
| Karl Keirstead | UBS | Lowers | Buy | $510.00 | $520.00 |
| Rishi Jaluria | RBC Capital | Maintains | Outperform | $500.00 | $500.00 |
| Michael Turrin | Wells Fargo | Raises | Overweight | $515.00 | $500.00 |
| Tyler Radke | Citigroup | Lowers | Buy | $500.00 | $520.00 |
| Brent Bracelin | Piper Sandler | Maintains | Overweight | $485.00 | $485.00 |
| Brent Bracelin | Piper Sandler | Raises | Overweight | $485.00 | $465.00 |
Key Insights:
- Action Taken: Analysts frequently update their recommendations based on evolving market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Microsoft. This information provides a snapshot of how analysts perceive the current state of the company.
- Rating: Offering insights into predictions, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Microsoft compared to the broader market.
- Price Targets: Analysts set price targets as an estimate of a stock's future value. Comparing the current and prior price targets provides insight into how analysts' expectations have changed over time. This information can be valuable for investors seeking to understand consensus views on the stock's potential future performance.
For valuable insights into Microsoft's market performance, consider these analyst evaluations alongside crucial financial indicators. Stay well-informed and make prudent decisions using our Ratings Table.
Stay up to date on Microsoft analyst ratings.
Delving into Microsoft's Background
Microsoft develops and licenses consumer and enterprise software. It is known for its Windows operating systems and Office productivity suite. The company is organized into three equally sized broad segments: productivity and business processes (legacy Microsoft Office, cloud-based Office 365, Exchange, SharePoint, Skype, LinkedIn, Dynamics), intelligence cloud (infrastructure- and platform-as-a-service offerings Azure, Windows Server OS, SQL Server), and more personal computing (Windows Client, Xbox, Bing search, display advertising, and Surface laptops, tablets, and desktops).
Microsoft: Delving into Financials
Market Capitalization Highlights: Above the industry average, the company's market capitalization signifies a significant scale, indicating strong confidence and market prominence.
Revenue Growth: Over the 3 months period, Microsoft showcased positive performance, achieving a revenue growth rate of 15.2% as of 30 June, 2024. This reflects a substantial increase in the company's top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Information Technology sector.
Net Margin: The company's net margin is a standout performer, exceeding industry averages. With an impressive net margin of 34.04%, the company showcases strong profitability and effective cost control.
Return on Equity (ROE): Microsoft's ROE lags behind industry averages, suggesting challenges in maximizing returns on equity capital. With an ROE of 8.45%, the company may face hurdles in achieving optimal financial performance.
Return on Assets (ROA): Microsoft's ROA surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 4.42% ROA, the company effectively utilizes its assets for optimal returns.
Debt Management: With a below-average debt-to-equity ratio of 0.25, Microsoft adopts a prudent financial strategy, indicating a balanced approach to debt management.
How Are Analyst Ratings Determined?
Ratings come from analysts, or specialists within banking and financial systems that report for specific stocks or defined sectors (typically once per quarter for each stock). Analysts usually derive their information from company conference calls and meetings, financial statements, and conversations with important insiders to reach their decisions.
Some analysts also offer predictions for helpful metrics such as earnings, revenue, and growth estimates to provide further guidance as to what to do with certain tickers. It is important to keep in mind that while stock and sector analysts are specialists, they are also human and can only forecast their beliefs to traders.
Which Stocks Are Analysts Recommending Now?
Benzinga Edge gives you instant access to all major analyst upgrades, downgrades, and price targets. Sort by accuracy, upside potential, and more. Click here to stay ahead of the market.
This article was generated by Benzinga's automated content engine and reviewed by an editor.