Microsoft: HSBC upgrades stock
(CercleFinance.com) - HSBC on Thursday upgraded Microsoft shares from "hold" to "buy" after the better-than-expected quarterly results published by the US software giant this week.
In its comments, the broker highlights Microsoft's broad exposure to artificial intelligence, which it believes should benefit its entire portfolio, growth and profit margins.
In addition to the expected acceleration in growth and potential for improvement in margins, the broker emphasizes the stock's attractive valuation, which is currently trading at a P/E of 26.7x, vs. 29.8x for the sector as a whole.
HSBC has therefore raised its target price from $347 to $413, which gives the stock upside potential of around 25%.
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The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
In its comments, the broker highlights Microsoft's broad exposure to artificial intelligence, which it believes should benefit its entire portfolio, growth and profit margins.
In addition to the expected acceleration in growth and potential for improvement in margins, the broker emphasizes the stock's attractive valuation, which is currently trading at a P/E of 26.7x, vs. 29.8x for the sector as a whole.
HSBC has therefore raised its target price from $347 to $413, which gives the stock upside potential of around 25%.
Copyright (c) 2023 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.