Microsoft (NASDAQ: MSFT) stock price was among the leaders in fiscal 2019 amid robust revenue growth. MSFT share price bounced 57% in the last twelve months along with a high double-digit year over year increase in cash returns. The sharp growth is supported by the high demand for the entire software and services industry.
All of the top players from the software and services industry reported considerable gains last year. Adobe (NASDAQ: ADBE) and Salesforce (NASDAQ: CRM) are among the big names in the industry. Adobe stock price grew 43% in the past twelve months while Salesforce has generated 22% share price appreciation last year.
Jefferies is Bullish on Software and Services Industry
Jefferies expects the software and services industry to extend the momentum in fiscal 2020. The firm has raised its price targets for the largest players. It lifted the Microsoft stock price target to $185 from $165. MSFT share price is currently trading at $157. In addition, the firm increased the Salesforce price target to $210 from the previous target of $195.
It also jacked up Adobe stock price target to $390 from $370. Adobe is currently trading around $340 a share. Jefferies also presented an optimistic outlook for Elastic with a price target of $85.
Adobe and Microsoft Stock Could Be the Best Performers
Adobe share price bounced on the back of solid revenue and earnings growth. The company has generated 22% year over year revenue growth in the latest quarter. The company expects fiscal 2020 revenue in the range of $13.15 billion, up from $11 billion last year.
“Adobe’s phenomenal performance in Q4 capped a record fiscal 2019 with revenue exceeding $11 billion,” said Shantanu Narayen, president, and CEO, Adobe. “Adobe’s vision, category leadership, continuous product innovation and large and loyal customer base position us well for 2020 and beyond.”
Microsoft is one of the best plays for defensive investors. This is because of its sustainable growth potential along with big cash returns for investors.