UPDATE: Goldman Sachs Upgrades Microsoft (MSFT) to Conviction Buy
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Goldman Sachs analyst Kash Rangan upgraded Microsoft (NASDAQ: MSFT) from Buy to Conviction Buy with a price target of $315.00.
The analyst comments "With commercial cloud continuing to grow as a percentage of the mix, we see the potential for sustainable double-digit top line growth and margin expansion, as commercial cloud gross margins (~71%) have become accretive to the corporate average (67% in F2Q21). We continue to see sustainable double-digit top line growth for Microsoft for several years to come alongside margin expansion and are modeling revenue and earnings to grow at an 14% and 21% CAGR from FY20 through FY23 respectively. We note our FY22 and FY23 EPS estimates of $8.37 and $10.27 are ~4% and ~11% above consensus of $8.08 and $9.29 respectively."
Shares of Microsoft closed at $226.72 yesterday.
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Create E-mail Alert Related CategoriesAnalyst Comments, Hot Upgrades, Upgrades
Related EntitiesGoldman Sachs Conviction Buy List, Goldman Sachs, Earnings
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