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 in upward trend: price may ascend as a result of having broken its lower Bollinger Band on October 31, 2024
MSFT may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options. In of 34 cases where MSFT's price broke its lower Bollinger Band, its price rose further in the following month. The odds of a continued upward trend are .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Moving Average Convergence Divergence (MACD) for MSFT just turned positive on November 26, 2024. Looking at past instances where MSFT's MACD turned positive, the stock continued to rise in of 50 cases over the following month. 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.
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 .
Bearish Trend Analysis
The Stochastic Oscillator has been in the overbought zone for 1 day. Expect a price pull-back in the near future.
The Momentum Indicator moved below the 0 level on November 27, 2024. You may want to consider selling the stock, shorting the stock, or exploring put options on MSFT as a result. In of 87 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 10-day moving average for MSFT crossed bearishly below the 50-day moving average on November 06, 2024. This indicates that the trend has shifted lower and could be considered a sell signal. In of 16 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are .
The 50-day moving average for MSFT moved below the 200-day moving average on November 29, 2024. This could be a long-term bearish signal for the stock as the stock shifts to an downward trend.
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 .
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 fairly steady price growth. MSFT’s price grows at a lower rate over the last 12 months as compared to 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 (30.679). P/E Ratio (38.386) is within average values for comparable stocks, (159.174). 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 (57.154).
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to slightly better than average 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.
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