5 Takeaways from Microsoft (MSFT) Preannouncement, JPMorgan Leaves PT Unchanged
- Wall Street extends rally as value stocks bounce
- China Tells Local Authorities to Prepare For a 'Possible Storm' and Prevent Unrest as Evergrande Crisis Unravels - WSJ
- Salesforce (CRM) Raises FY22 Revenue Guidance; Initiates FY23 Revenue
- Oil prices rise, hit 2-month highs on supply worries
- IDFA Seen as a 'Real Headwind' for Facebook (FB) but Analysts Remain Positive
Get instant alerts when news breaks on your stocks. Claim your 1-week free trial to StreetInsider Premium here.
JPMorgan analyst Mark Murphy reiterated an Overweight rating and $200.00 price target on Microsoft (NASDAQ: MSFT) after the company announced that it does not expect to meet its More Personal Computing segment (32% of total revenue) guidance of $10.75B-$11.15B. The analyst offered 5 key takeaways from the preannouncement:
1) The preannouncement is a Supply Chain issue, not a demand issue.
2) MPC is MSFT's least strategic segment.
3) All other segments of March guidance is left unchanged.
4) EPS Sensitivity is likely high. For Microsoft to comment this early in the March quarter the impact is likely large. The analyst estimates that every $1B of adverse MPC impact would equate to 3-8c of EPS depending on the mix.
5) It is very difficult to assess the potential impact of COVID-19 on the software universe.
Shares of Microsoft closed at $166.00 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Popular stocks with increasing volume: DKNG DIS FCX MSFT CLF F UBER
- Storm Resources Ltd. (SRX:CN) (SRMLF) PT Raised to Cdn$8.75 at Stifel Canada
- UPDATE: Syros Pharmaceuticals (SYRS) PT Raised to $23 at Roth Capital
Create E-mail Alert Related CategoriesAnalyst Comments
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!