Bank of America has adjusted its outlook for Microsoft (MSFT, Financial), reducing the price target from $510 to $480 while maintaining a Buy rating. This decision follows discussions with key system integration partners, which indicated that deal activity remained steady during the third fiscal quarter.
The analyst from BofA forecasts Microsoft's Q3 revenue to align closely with their estimate of $68.2 billion, representing a 10.3% increase compared to the same period last year. The upcoming fiscal quarter's attention will be concentrated on Azure's performance and capital expenditures.
Although no significant declines in consumption or pipeline growth were noted, BofA has revised its projections for Azure's Q4 growth. The firm now anticipates a 30.5% growth in constant currency, down from a previous estimate of 31.5%, due to increasing macroeconomic uncertainties.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 49 analysts, the average target price for Microsoft Corp (MSFT, Financial) is $495.77 with a high estimate of $650.00 and a low estimate of $423.00. The average target implies an upside of 27.84% from the current price of $387.81. More detailed estimate data can be found on the Microsoft Corp (MSFT) Forecast page.
Based on the consensus recommendation from 60 brokerage firms, Microsoft Corp's (MSFT, Financial) average brokerage recommendation is currently 1.8, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Microsoft Corp (MSFT, Financial) in one year is $497.59, suggesting a upside of 28.31% from the current price of $387.81. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Microsoft Corp (MSFT) Summary page.
