Microsoft(MSFT:NSD) Mizuho lifts target on Azure

STA Research
by: STA Research

Mizuho’s analyst Gregg Moskowitz lifted the target on Microsoft to $255 from $240 and maintained his Buy rating.   Moskowitz boosted the company’s target on the basis that  channel checks indicate continued improvement for software purchases and that Azure checks “were good,” as the analyst believes Microsoft will meet or exceed his forecast for 45% year-over-year growth for Azure. 

STA Research(stocktargetadvisor) has a average target  om Microsoft for $219, and a consensus Strong Buy rating.

STA Research’s analysis of the stock is Slightly Bullish with a score of 6.4 out of 10, where 0 is very bearish and 10 very bullish.
What to like:
High market capitalization
This is one of the largest entities in its sector and is among the top quartile. Such companies tend to be more stable.
Superior return on equity
The company management has delivered better return on equity in the most recent 4 quarters then its peers, placing it in the top quartile.
Superior capital utilization
The company management has delivered better return on invested capital in the most recent 4 quarters than its peers, placing it in the top quartile.
Superior return on assets
The company management has delivered better return on assets in the most recent 4 quarters than its peers, placing it in the top quartile.
Positive cash flow
The company had positive total cash flow in the most recent four quarters.
Positive free cash flow
The company had positive total free cash flow in the most recent four quarters.
Superior Earnings Growth
This stock has shown top quartile earnings growth in the previous 5 years compared to its sector.
What to not like:
Overpriced compared to book value
The stock is trading high compared to its peers median on a price to book value basis.
Overpriced on cashflow basis
The stock is trading high compared to its peers on a price to cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are consideringto buy.
Overpriced on free cash flow basis
The stock is trading high compared to its peers on a price to free cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering to buy.
Low Revenue Growth
This stock has shown below median revenue growth in the previous 5 years compared to its sector

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