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".

For an analyst ratings summary and ratings history on Microsoft click here. For more ratings news on Microsoft click here.

Shares of Microsoft closed at $224.00 yesterday.

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