Re: Young Folk Portfolio ... Buy
Enough dividends have accumulated where I can make a purchase in MSFT today. There isn't much to say about MSFT as everyone knows who they are and are aware of their past performance.
However I do like to look for catalysts when buying overvalued companies and MSFT has plenty of catalysts.
Argus Research and The Street give MSFT a BUY rating. CFRA has a STRONG BUY rating out on them. Credit Suisse has an OUTPERFORM rating on them. Wall Street has a VERY BULLISH rating on them and according to TD Ameritrade 23 analysts have BUY ratings on them and only 1 calls it a HOLD.
I think there is enough strength there to add to the position.
Here's what CFRA says:
Our Strong Buy is primarily based on MSFT’s ongoing and, so far, very successful cloud transition, with strong traction for cloud versions of Office (i.e., “365”), Dynamics, Teams, and, of course, Azure cloud services. Revenue from cloud-based businesses also includes LinkedIn, Bing, and Xbox-Live and is now ~65% of total. As MSFT reaps greater scale efficiencies, we forecast operating margin to hit 50% in ‘23, up from 42% in ‘21, 45% in 1Q ‘22. We assume no revenue growth for Windows (we estimate ~12% of ‘21 revenue) through ‘23 but still expect higher contribution to net income from the Windows cash cow. We note tremendous upside potential in AR/VR, both for gaming and a growing number of industrial use cases well-suited to MSFT’s Hololens goggles and development platform.
MSFT sounds like a ... git some to me. |
