Microsoft (MSFT, $160.09) gets a price target boost from Wedbush on cloud optimism
Tech behemoth Microsoft Corp. got a $195 price target from analysts at Wedbush.
Wedbush analyst Dan Ives and his team boosted price target on Microsoft shares to $195 from $185. Wedbush’s price target alongwith their outperform rating on Microsoft is the highest on Wall Street. The team of analysts also set a bull case valuation on the stock at $210 vs. the average sell-side PT of $165.79.
Dan Ives cited Microsoft's stronger-than-expected customer deal inflows from Azure, its enterprise cloud services, as well as the $10 billion 'JEDI' contract with the Pentagon that it won against cloud rival Amazon earlier this year, as factors that could potentially justify a $210 share price.
While Amazon is leading the cloud space at present, Ives believes that Microsoft is "closing the gap" based on Redmond’s gains from accelerating spend among enterprises around both public and hybrid cloud deployments.
"Enterprise customers and partners we have spoken to over the past few weeks indicate a clear acceleration of larger and more strategic enterprise cloud deals as Redmond is poised to win the majority of the next phase of cloud deployments vs. the likes of Amazon and Bezos," Ives noted.
MSFT sees its 50-day moving average cross bullishly above its 200-day moving average
The 50-day moving average for MSFT moved above the 200-day moving average on December 11, 2024. This could be a long-term bullish signal for the stock as the stock shifts to an upward trend.
Technical Analysis (Indicators)
Bullish Trend Analysis
The Stochastic Oscillator suggests the stock price trend may be in a reversal from a downward trend to an upward trend. of 47 cases where MSFT's Stochastic Oscillator exited the oversold zone resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
MSFT moved above its 50-day moving average on November 26, 2024 date and that indicates a change from a downward trend to an upward trend.
The 10-day moving average for MSFT crossed bullishly above the 50-day moving average on December 03, 2024. This indicates that the trend has shifted higher and could be considered a buy signal. In of 17 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where MSFT advanced for three days, in of 336 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 340 cases where MSFT Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
Bearish Trend Analysis
The 10-day RSI Indicator for MSFT moved out of overbought territory on December 18, 2024. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 50 similar instances where the indicator moved out of overbought territory. In of the 50 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
The Momentum Indicator moved below the 0 level on December 18, 2024. You may want to consider selling the stock, shorting the stock, or exploring put options on MSFT as a result. In of 89 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
The Moving Average Convergence Divergence Histogram (MACD) for MSFT turned negative on December 19, 2024. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 51 similar instances when the indicator turned negative. In of the 51 cases the stock turned lower in the days that followed. This puts the odds of success at .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where MSFT declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
MSFT broke above its upper Bollinger Band on December 04, 2024. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 87, placing this stock better than average.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. MSFT’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to consistent earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is fair valued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (13.245) is normal, around the industry mean (31.078). P/E Ratio (38.386) is within average values for comparable stocks, (160.694). Projected Growth (PEG Ratio) (2.153) is also within normal values, averaging (2.755). Dividend Yield (0.007) settles around the average of (0.084) among similar stocks. P/S Ratio (13.928) is also within normal values, averaging (58.228).
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