Demystifying Microsoft: Insights From 16 Analyst Reviews
Microsoft received mixed ratings from 16 analysts over the past three months, with an average 12-month price target of $506.44, reflecting a 0.66% decrease. Analysts' actions included lowering, raising, or maintaining ratings based on market conditions. Financially, Microsoft shows strong performance with a market cap exceeding industry averages, a revenue growth rate of 12.27%, a net margin of 34.62%, and a debt-to-equity ratio of 0.21. Analyst ratings are crucial for investors, providing insights into stock performance and future expectations.
Ratings for Microsoft MSFT were provided by 16 analysts in the past three months, showcasing a mix of bullish and bearish perspectives.
In the table below, you'll find a summary of their recent ratings, revealing the shifting sentiments over the past 30 days and comparing them to the previous months.
| Bullish | Somewhat Bullish | Indifferent | Somewhat Bearish | Bearish | |
|---|---|---|---|---|---|
| Total Ratings | 5 | 10 | 1 | 0 | 0 |
| Last 30D | 1 | 0 | 0 | 0 | 0 |
| 1M Ago | 3 | 2 | 0 | 0 | 0 |
| 2M Ago | 1 | 3 | 1 | 0 | 0 |
| 3M Ago | 0 | 5 | 0 | 0 | 0 |
Insights from analysts' 12-month price targets are revealed, presenting an average target of $506.44, a high estimate of $595.00, and a low estimate of $425.00. A negative shift in sentiment is evident as analysts have decreased the average price target by 0.66%.
Investigating Analyst Ratings: An Elaborate Study
In examining recent analyst actions, we gain insights into how financial experts perceive Microsoft. The following summary outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.
| Analyst | Analyst Firm | Action Taken | Rating | Current Price Target | Prior Price Target |
|---|---|---|---|---|---|
| Brent Thill | Jefferies | Lowers | Buy | $500.00 | $550.00 |
| Ivan Feinseth | Tigress Financial | Raises | Buy | $595.00 | $550.00 |
| Daniel Ives | Wedbush | Maintains | Outperform | $550.00 | $550.00 |
| Patrick Colville | Scotiabank | Announces | Sector Outperform | $470.00 | - |
| Gil Luria | DA Davidson | Raises | Buy | $450.00 | $425.00 |
| Brad Reback | Stifel | Lowers | Buy | $475.00 | $515.00 |
| Karl Keirstead | UBS | Lowers | Buy | $510.00 | $525.00 |
| Gil Luria | DA Davidson | Maintains | Neutral | $425.00 | $425.00 |
| Rishi Jaluria | RBC Capital | Maintains | Outperform | $500.00 | $500.00 |
| Keith Weiss | Morgan Stanley | Lowers | Overweight | $530.00 | $540.00 |
| Gregg Moskowitz | Mizuho | Lowers | Outperform | $500.00 | $510.00 |
| Thomas Blakey | Cantor Fitzgerald | Maintains | Overweight | $509.00 | $509.00 |
| Brent Bracelin | Piper Sandler | Maintains | Overweight | $520.00 | $520.00 |
| Keith Weiss | Morgan Stanley | Lowers | Overweight | $540.00 | $548.00 |
| Thomas Blakey | Cantor Fitzgerald | Announces | Overweight | $509.00 | - |
| Brent Bracelin | Piper Sandler | Raises | Overweight | $520.00 | $470.00 |
Key Insights:
- Action Taken: In response to dynamic market conditions and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their reaction to recent developments related to Microsoft. This insight gives a snapshot of analysts' perspectives on the current state of the company.
- Rating: Analysts unravel qualitative evaluations for stocks, ranging from 'Outperform' to 'Underperform'. These ratings offer insights into expectations for the relative performance of Microsoft compared to the broader market.
- Price Targets: Analysts navigate through adjustments in price targets, providing estimates for Microsoft's future value. Comparing current and prior targets offers insights into analysts' evolving expectations.
Considering these analyst evaluations in conjunction with other financial indicators can offer a comprehensive understanding of Microsoft's market position. Stay informed and make well-informed decisions with our Ratings Table.
Stay up to date on Microsoft analyst ratings.
All You Need to Know About Microsoft
Microsoft develops and licenses consumer and enterprise software. It is known for its Windows operating systems and Office productivity suite. The company is organized into three equally sized broad segments: productivity and business processes (legacy Microsoft Office, cloud-based Office 365, Exchange, SharePoint, Skype, LinkedIn, Dynamics), intelligence cloud (infrastructure- and platform-as-a-service offerings Azure, Windows Server OS, SQL Server), and more personal computing (Windows Client, Xbox, Bing search, display advertising, and Surface laptops, tablets, and desktops).
Microsoft: Financial Performance Dissected
Market Capitalization: Boasting an elevated market capitalization, the company surpasses industry averages. This signals substantial size and strong market recognition.
Revenue Growth: Microsoft displayed positive results in 3 months. As of 31 December, 2024, the company achieved a solid revenue growth rate of approximately 12.27%. This indicates a notable increase in the company's top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Information Technology sector.
Net Margin: Microsoft's financial strength is reflected in its exceptional net margin, which exceeds industry averages. With a remarkable net margin of 34.62%, the company showcases strong profitability and effective cost management.
Return on Equity (ROE): Microsoft's ROE excels beyond industry benchmarks, reaching 8.17%. This signifies robust financial management and efficient use of shareholder equity capital.
Return on Assets (ROA): Microsoft's ROA surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 4.56% ROA, the company effectively utilizes its assets for optimal returns.
Debt Management: Microsoft's debt-to-equity ratio is below the industry average at 0.21, reflecting a lower dependency on debt financing and a more conservative financial approach.
The Core of Analyst Ratings: What Every Investor Should Know
Analyst ratings serve as essential indicators of stock performance, provided by experts in banking and financial systems. These specialists diligently analyze company financial statements, participate in conference calls, and engage with insiders to generate quarterly ratings for individual stocks.
Some analysts also offer predictions for helpful metrics such as earnings, revenue, and growth estimates to provide further guidance as to what to do with certain tickers. It is important to keep in mind that while stock and sector analysts are specialists, they are also human and can only forecast their beliefs to traders.
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This article was generated by Benzinga's automated content engine and reviewed by an editor.