Microsoft Corporation (MSFT:NSD) Analyst rate as Strong Buy, see big upside with $336 target

Itau Unibanco initiates Microsoft Corporation to outperform at a target price of $287.

Based on the Microsoft stock forecast from 24 analysts, the average analyst Microsoft stock price target is USD 336.58 over the next 12 months. Microsoft Corporation’s average analyst rating is Strong Buy. Stock Target Advisor’s own Microsoft stock forecast is Slightly Bullish, which is based on 9 positive signals and 4 negative signals. At the last closing, Microsoft stock price was USD 251.90Microsoft stock price has changed by -7.63% over the past week, -15.80% over the past month and -12.09% over the last year.

Microsoft Corporation develops, licenses, and supports software, services, devices, and solutions worldwide. Its Productivity and Business Processes segment offers a set of cloud-based and on-premises business solutions for organizations and enterprise divisions. It sells its products through OEMs, distributors, and resellers; and directly through digital marketplaces, online stores, and retail stores. It has collaborations with Dynatrace, Inc., Morgan Stanley, Micro Focus, WPP plc, ACI Worldwide, Inc., and iCIMS, Inc., as well as strategic relationships with Avaya Holdings Corp. and wejo Limited. Microsoft Corporation was founded in 1975 and is based in Redmond, Washington.

What we 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 risk adjusted returns:

The Microsoft stock price has performed well, on a risk adjusted basis, compared to its sector peers (for a hold period of at least 12 months) and is in the top quartile.

Low volatility:

The Microsoft stock history displays stable and consistent annual returns as compared to its sector peers (for a hold period of at least 12 months) and is in the top quartile. Although stability is good, also keep in mind it can limit returns.

Superior return on equity:

The company management has delivered better return on equity in the most recent 4 quarters than 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 microsoft stock history exhibits 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:

The Microsoft stock price has shown top quartile earnings growth in the previous 5 years compared to its sector.

What we don’t like:

Below median total returns:

The company has under performed its peers on annual average total returns in the past 5 years.

Overpriced compared to book value:

The Microsoft stock price is trading high compared to its peers median on a price to book value basis.

Overpriced on cashflow basis:

The Microsoft stock price 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 considering to buy.

Overpriced on free cash flow basis:

The Microsoft stock price 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.