Fubotv earnings beat by $0.10, revenue topped estimates
On Wednesday, TD Cowen reaffirmed its Buy rating on Microsoft Corporation (NASDAQ:MSFT) stock, with a steady price target of $475.00. According to InvestingPro data, analyst targets for Microsoft range from $415 to $650, with the company maintaining a strong "Buy" consensus recommendation of 1.41. Analysts at the firm based their outlook on the expectation of consistent growth in Microsoft’s Azure cloud services, despite not identifying any new accelerators for growth. They noted that Microsoft has performed better than its peers in recent weeks, as investors have gravitated towards more secure investments.
Microsoft’s stock has decreased by 12% from its February peak, currently trading at approximately 26 times the projected earnings for fiscal year 2026, which is considered a strong performance relative to other companies in the sector. InvestingPro analysis shows Microsoft trading at a P/E ratio of 30.33, with the company’s market capitalization standing at $2.81 trillion. InvestingPro Tips indicate the stock is trading at premium multiples across several metrics, suggesting current valuation levels warrant careful consideration. The analysts predict that the upcoming third-quarter results could see a revenue and margin boost from the Windows division, potentially due to inventory buildup in anticipation of tariff announcements.
While third-party data indicated a slight decline in Azure’s performance in the first quarter, TD Cowen expects Microsoft’s guidance to suggest consistent growth trends into the fourth quarter. The company has demonstrated robust financial health, with InvestingPro data showing revenue growth of 15.04% and an impressive overall Financial Health Score of 3.08 (rated as "GREAT"). Subscribers to InvestingPro can access 10+ additional exclusive insights about Microsoft’s growth metrics and financial health indicators. Nonetheless, the firm anticipates ongoing discussions regarding Azure’s growth trajectory for fiscal year 2026, with expectations for the growth rate to hover around the low 30% range.
The report also suggests that foreign exchange trends could positively influence estimates, adding a tailwind to the company’s financial performance. Despite the lack of clear signals for Azure’s growth acceleration in fiscal year 2026, TD Cowen’s analysts maintain their Buy rating and price target, which is based on approximately 32 times the projected earnings for fiscal year 2026. Microsoft has demonstrated consistent shareholder returns, with InvestingPro data showing the company has maintained dividend payments for 23 consecutive years, including 19 years of consecutive dividend increases. For detailed analysis and comprehensive metrics, investors can access Microsoft’s full Pro Research Report, available exclusively on InvestingPro.
In other recent news, Microsoft Corporation’s financial outlook has been adjusted by two major financial firms. BofA Securities reduced its price target for Microsoft from $510 to $480, while maintaining a Buy rating. This revision followed discussions with several System Integrator partners, indicating that Microsoft’s deal activity is stabilizing. BofA anticipates Microsoft’s revenue for the third fiscal quarter of 2024 to align with their projection of $68.2 billion, reflecting a 10.3% year-over-year increase. Meanwhile, BMO Capital Markets also revised its price target for Microsoft, lowering it to $470 from $490, but kept an Outperform rating. This adjustment was influenced by a slowdown in Azure’s legacy cloud business, excluding AI workloads. Despite these changes, both firms express continued confidence in Microsoft’s market position. These developments are being closely monitored by investors as Microsoft navigates the dynamic cloud computing landscape.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.