Microsoft (MSFT) – Get the report from Microsoft Corporation (MSFT) received a target share price increase from Jefferies analyst Brent Thill, who sees a strong earnings report from the tech giant on Tuesday.
It raised its target to $ 335 from $ 310 on the stock and maintained its buy rating for the software company.
Microsoft was at $ 288.70, down 0.33%, in pre-market trading. It has jumped 26% in the past six months amid strong financial performance.
Microsoft has posted a significant outperformance year-to-date, up 30% versus the software index, raising the bar slightly higher for MSFT stocks entering the ‘fourth quarter earnings report of fiscal year 2021, Thill said.
Expectations for the quarter ended June 30 “are achievable, supported by MSFT’s diverse portfolio, including Azure and Teams, which are driving up-selling,” he said.
“The key things to watch are pressure on FY2022 margins, high expectations and more color on recent merger acquisitions and broader aspirations,†Thill added.
Potential strengths of the results report include commercial RPO [recovery point objectives] growth ‘, Windows OEM [original equipment manufacturer] and favorable seasonality, said Thill
Microsoft’s operating margins are expected to “improve modestly over time, but will face headwinds over the next two years as MSFT invests in the business and realizes the savings from the pandemic,” said he declared.
Thill also sees Microsoft “successfully integrating all of its mergers and acquisitions.” And he sees “potential” for increased dividends and share buybacks.
Meanwhile, TheStreet’s Jim Cramer explained last week why Salesforce (CRM) – Get salesforce.com, inc. Report Slack takeover planned (JOB) – Get the Class A report from Slack Technologies, Inc. will give Salesforce chief executive Marc Benioff the tools he needs to fight Microsoft.
