Microsoft Corporation : There is still some upside potential

09/09/2020 | 09:58am EDT

long trade Target price hit

Entry price : 207.6$ | Target : 224$ | Stop-loss : 194$ | Potential : 7.9%

Shares in Microsoft Corporation do not show any sign of a slowdown in the ascending dynamic. Investors could bet on a continuation of the underlying trend. Investors have an opportunity to buy the stock and target the $ 224.

Summary

• The company has strong fundamentals. More than 70% of listed companies have a lower mix of growth, profitability, debt and visibility criteria.
• In a short-term perspective, the company has interesting fundamentals.

Strengths

• Growth is a substantial asset for the company, as anticipated by dedicated analysts. Within the next three years, growth is estimated to reach 35% by 2023.
• Margins returned by the company are among the highest on the stock exchange list. Its core activity clears big profits.
• Thanks to a sound financial situation, the firm has significant leeway for investment.
• There is high visibility into the group's activities for the coming years. Outlooks on future revenues from analysts covering the equity remain similar. Such hardly dispersed estimates support highly predictable sales for the current and upcoming fiscal years.
• The group usually releases upbeat results with huge surprise rates.
• Analysts have a positive opinion on this stock. Average consensus recommends overweighting or purchasing the stock.
• Within the weekly time frame the stock shows a bullish technical configuration above the support level at 178.6 USD

Weaknesses

• The company's "enterprise value to sales" ratio is among the highest in the world.
• The firm pays small or no dividend to shareholders. For that reason, it is not a yield company.

David Meurisse

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