Microsoft (NASDAQ: MSFT) stock price already rallied significantly since the beginning of this year. It is among the top-performing stocks in the tech industry. Fortunately, market analysts believe MSFT share price is poised to extend the momentum amid strong penetration in cloud markets.
MSFT share price soared close to 38% since the start of this year, extending the three-year rally to 134%.
Microsoft stock price is currently trading around an all-time high of $140. In addition, its healthy dividend yield and sustainable cash returns are making it a most defensive sock for retirees.
Analysts Raised Microsoft Stock Price Target
The market analysts are showing confidence in MSFT’s future fundamentals. RBC analyst Alex Zukin, for instance, raised the MSFT share price target to $160 from $153. The analysts call it an outperformer over several years. The analyst also predicts that MSFT is “King of Cloud”.
He said, “MSFT is “King of Cloud” with outperformance dependent on helping enterprises “seamlessly” move to the cloud.”
BMO sees pressure on tech companies in the coming days amid macroeconomic headwinds. Despite headwinds, the firm claims that Microsoft is well set to offer strong returns to investors; the firm calls it a defendable stock.
Barclays predicts that MSFT is likely to beat earnings estimates – which would help in extending the stock price momentum.
Double-Digit Financial Growth Supports Uptrend
The company has been generating double-digit growth in revenue and earnings over the past couple of quarters. Its revenue grew 12% in the final quarter while operating earnings jumped 20% year over year. Its commercial cloud revenue increased 39% year over year to $11.0 billion in the latest quarter.
The company expects to generate double-digit revenue and earnings growth in the first quarter of 2020. It has returned close to $7 billion to investors last year in the form of dividends and cash returns.
MSFT expects to return significant cash in fiscal 2020; the double-digit dividend increase is highly likely this year. Overall, several catalysts such as financial growth and cash returns are supporting Microsoft stock price.