Wall Street analysts’ views on Microsoft stock
In this series, we’ve looked at analyst expectations for Microsoft’s (MSFT) soon-to-be-announced fiscal 1Q17 results and its improved stance in the cloud space. Even though Amazon (AMZN) leads the overall cloud space, Microsoft reported 100% growth in calendar 2Q16 and now leads the overall enterprise SaaS (software-as-a-service) space. IBM (IBM) leads the overall hybrid cloud space, and Google (GOOGL) (GOOG) reported the highest growth in the space, in spite of starting late.
Of the 33 analyst recommendations on Microsoft stock, 64.0% have issued a “buy” recommendation as of October 13, 2016, and 9.0% have issued a “hold.” The remaining ~27.0% have issued a “sell.” Analyst recommendations for MSFT stock haven’t changed much in the past month.
Microsoft stock has received upgrades from various research houses. Nomura has a “buy” rating on Microsoft stock with a price target of $65. Vetr upgraded the stock from a “hold” to a “buy” with a target of $59.95. Credit Agricole SA and Cowen reiterated their “outperform” ratings with a price target of $60.
The median target price set by analysts for Microsoft was $59.55 on October 13, 2016. Microsoft’s closing price was $56.92 that day.
Microsoft’s price performance
Microsoft’s stock performance has been slightly positive in the past month. As of October 13, 2016, the stock has risen ~0.7% in the past one month. During the past year, it has risen ~21.0%.
For diversified exposure to select software companies in the United States, you can consider investing in ETFs such as the SPDR S&P 500 ETF (SPY), which has an 8.0% exposure to the application software industry.