Morgan Stanley analyst Keith Weiss has maintained their bullish stance on MSFT stock, giving a Buy rating yesterday.
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Keith Weiss has given his Buy rating due to a combination of factors that highlight Microsoft’s strong financial position and promising growth prospects. The recent 10% increase in Microsoft’s quarterly dividend to $0.91 per share reflects the company’s commitment to returning capital to shareholders and aligns with its historical dividend growth rate. This increase, combined with robust earnings per share growth, supports a solid total return profile, making Microsoft an attractive investment.
Moreover, Microsoft’s substantial cash reserves and ongoing share repurchase program further bolster its financial stability. With over $55 billion remaining in its current share repurchase authorization and expectations of significant free cash flow generation, the company is well-positioned to continue rewarding shareholders. Additionally, Microsoft’s projected mid-teens revenue growth and efficient cost management contribute to a forecasted 16% EPS compound annual growth rate through FY28, underpinning a 17% total return profile.
Weiss covers the Technology sector, focusing on stocks such as Microsoft, Intuit, and Salesforce. According to TipRanks, Weiss has an average return of 13.0% and a 64.50% success rate on recommended stocks.