Microsoft (MSFT) Overweight Reiterated at Wells Fargo After Gartner and IDC PC Data Grows Faster Than Expected

October 13, 2020 7:07 AM

Wells Fargo analyst Philip Winslow reiterated an Overweight rating and $250.00 price target on Microsoft (NASDAQ: MSFT) after Gartner (sell-through) and IDC (sell-in) reported year-over-year shipment increases of 3.6% and 14.6% year-over-year for Q3, versus increases of 2.8% and 11.2% in Q2 and decreases of 12.3% and 9.8%, in Q1. Distanced learning and home entertainment drove strong Consumer results while business continuity efforts persisted in the Business segment coupled with cost optimization.

The analyst stated "For at least the next 3-5 years, we believe Microsoft can deliver (1) low-to-mid teens revenue growth—driven by growth of +20% in Intelligent Cloud, +10% in Productivity and Business Processes, and ~3% in Windows—and (2) mid-to-high teens EPS and FCFPS growth—as the company continues to prudently control costs and consistently repurchase shares".

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Shares of Microsoft closed at $224.00 yesterday.


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