In our daily upgrades and downgrades we noted that Microsoft Corporation (NASDAQ: MSFT) was raised to Buy by the research team at Argus this morning. Frankly, the call feels late because Microsoft has been breaking out on its chart for just about all of 2012 so far. What is interesting is that the price target is so high: $39.00.
The motive here is Windows 8 launching this year as the operation system that can compete in both the PC and in the tablet markets. The stock only trades at about 12-times Argus’ current year earnings and less than 11-times next year’s earnings estimates. The report noted, “We view Microsoft shares as undervalued by historical standards and relative to peers.”
With shares at $32.85, the 52-week trading range is $23.65 to $32.94. Analysts have been raising the target price on Microsoft and Thomson Reuters now has a consensus price target objective of $33.00 per share. This $39.00 is at the top of the range of estimates, and the highest target noted by Thomson Reuters is $40.00 on the stock. Because the share performance has been so strong, Microsoft now yields only 2.4% on its dividend.
If Argus is right on its price target, then there is just over 20% upside left in Microsoft shares if you include its dividend.
JON C. OGG
Take This Retirement Quiz To Get Matched With A Financial Advisor (Sponsored)
Take the quiz below to get matched with a financial advisor today.
Each advisor has been vetted by SmartAsset and is held to a fiduciary standard to act in your best interests.
Here’s how it works:
1. Answer SmartAsset advisor match quiz
2. Review your pre-screened matches at your leisure. Check out the
advisors’ profiles.
3. Speak with advisors at no cost to you. Have an introductory call on the phone or introduction in person and choose whom to work with in the future
Take the retirement quiz right here.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Editors' Picks
