Microsoft Corp. Upgraded to “Buy” at Jefferies Group (MSFT)
Microsoft Corp. (NASDAQ:MSFT) was upgraded by research analysts at Jefferies Group from a “hold” rating to a “buy” rating in a report released on Tuesday, TheFlyOnTheWall.com reports. The firm currently has a $42.00 price objective on the stock, up from their previous price objective of $33.00. Jefferies Group’s target price suggests a potential upside of 21.77% from the stock’s previous close.
The analysts wrote, “We upgrade the stock based on: 1) A new operating structure with greater transparency on the best assets; 2) Increased conviction around the transition to the cloud with Office 365/ Azure; 3) Optionality on Intel’s improving competitiveness, which could drive upside to Windows; 4) Increasing value of IP related to Android; 5) The potential for portfolio focus/ better capital allocation under a new CEO.”
Microsoft Corp. (NASDAQ:MSFT) traded up 0.12% on Tuesday, hitting $34.49. 46,992,204 shares of the company’s stock traded hands. Microsoft Corp. has a 52-week low of $26.26 and a 52-week high of $36.43. The stock’s 50-day moving average is $32.99 and its 200-day moving average is $32.89. The company has a market cap of $287.3 billion and a P/E ratio of 13.35.
Microsoft Corp. (NASDAQ:MSFT) last posted its quarterly earnings results on Thursday, July 18th. The company reported $0.59 EPS for the quarter, missing the Thomson Reuters consensus estimate of $0.75 by $0.16. The company had revenue of $19.90 billion for the quarter, compared to the consensus estimate of $20.73 billion. During the same quarter in the prior year, the company posted $0.73 earnings per share. The company’s quarterly revenue was up 10.2% on a year-over-year basis. Analysts expect that Microsoft Corp. will post $2.71 EPS for the current fiscal year.
The company also recently announced a quarterly dividend, which is scheduled for Thursday, December 12th. Shareholders of record on Thursday, November 21st will be paid a dividend of $0.28 per share. This represents a $1.12 annualized dividend and a dividend yield of 3.25%. The ex-dividend date is Tuesday, November 19th. This is a positive change from Microsoft Corp.’s previous quarterly dividend of $0.23.
A number of other analysts have also recently weighed in on MSFT. Analysts at TheStreet reiterated a “buy” rating on shares of Microsoft Corp. in a research note to investors on Friday. Separately, analysts at UBS AG cut their EPS estimates on shares of Microsoft Corp. in a research note on Tuesday. They now have a “buy” rating and a $37.00 price target on the stock. Three analysts have rated the stock with a sell rating, nineteen have assigned a hold rating and fourteen have assigned a buy rating to the company. Microsoft Corp. presently has an average rating of “Hold” and an average price target of $33.89.
Microsoft Corporation is engaged in developing, licensing and supporting a range of software products and services.
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