KeyBanc Believes Microsoft (NASDAQ: MSFT) Won’t Stop Here

By Ryan Adsit

In a report released today, Brent Bracelin from KeyBanc maintained a Buy rating on Microsoft (MSFTResearch Report), with a price target of $143. The company’s shares opened today at $133.88, close to its 52-week high of $134.24.

Bracelin observed:

“We came away from meetings with Microsoft Gaming executives yesterday more encouraged by the strategy around subscriptions, content, partnerships, and Azure as a gaming optimized cloud back-end that suggests this $10B+ segment could sustain healthy growth and improving margins over the next three to five years. While Gaming is a small component of overall revenue at 9.4% of FY18 sales, we see innovations around Game Pass, xCloud, and Project Scarlett as evidence that Microsoft views this as a strategic growth opportunity addressing 2B+ gaming consumers in a $100B+ industry.”

According to TipRanks.com, Bracelin is a top 25 analyst with an average return of 30.5% and a 76.9% success rate. Bracelin covers the Technology sector, focusing on stocks such as Tyler Technologies, Coupa Software Inc, and Salesforce.com.

The word on The Street in general, suggests a Strong Buy analyst consensus rating for Microsoft with a $142.83 average price target, implying a 6.7% upside from current levels. In a report issued on May 27, Credit Suisse also maintained a Buy rating on the stock with a $145 price target.

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The company has a one-year high of $134.24 and a one-year low of $93.96. Currently, Microsoft has an average volume of 25.11M.

Based on the recent corporate insider activity of 106 insiders, corporate insider sentiment is negative on the stock.

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