Microsoft Stock Forecast: Analysts Predict Strong Upside Potential
Average One-Year Forecast Predicts Price Target of $427.57
Analysts Maintain Overweight Rating and Raise Price Targets
Microsoft Corporation (MSFT) stock continues to attract attention from analysts, with recent forecasts predicting strong upside potential. The average one-year price target for MSFT stock in 2024-2025 stands at $427.57, according to MarketBeat data. The highest projection is $60,000, while the lowest estimate is $23,200. This suggests a significant potential return for investors.
Analysts at Morgan Stanley have maintained an Overweight rating for Microsoft stock and raised their price target from $465 to $520. The analyst, Keith Weiss, highlighted the company's strong fundamentals and its focus on cloud computing and artificial intelligence as key drivers for growth.
Strong Consensus Among Analysts
There is a strong consensus among analysts covering MSFT stock. The 40 analysts with 12-month price forecasts have an average target of $427.13, with a low estimate of $306 and a high estimate of $600. This indicates that the majority of analysts believe that Microsoft stock has significant upside potential.
The median 12-month price target among Wall Street analysts covering MSFT stock is $410, suggesting double-digit upside for the stock through November 2024. This is supported by the fact that 49 out of 57 analysts have issued a Buy or Strong Buy rating for the stock in the past three months.
Positive Financial Performance
Microsoft's recent financial performance has also bolstered analysts' confidence in the stock. In the last reported quarter, the company reported revenues of $62.02 billion, representing a year-over-year increase of 17.6%. EPS for the same period was $2.93, compared to $2.32 a year ago.
The company's cloud-computing business, Azure, continues to drive growth. In the third quarter, Azure grew by 28% year-over-year, exceeding the company's forecast for growth of 25%. This growth is expected to continue in the coming quarters.
Conclusion
Based on the latest analysts' forecasts and the company's strong financial performance, Microsoft stock appears to be well-positioned for growth. The average one-year price target of $427.57 suggests a significant potential return for investors, and the consensus among analysts is positive. However, it's important to note that stock prices can fluctuate, and investors should conduct thorough research before making any investment decisions.
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