Microsoft Corp. (NASDAQ: MSFT) stock negated all losses from 2022 this year and made all-time highs just a month ago in July. Can it keep the upward momentum?
Wall Street analysts believe the Microsoft stock will make new highs within the next 12 months.
The average analyst target price sees a 19% gain
Analyst consensus at TipRanks is a ‘strong buy’ for the MSFT stock based on 35 analysts in the last three months. Their average price target is $391.52, which is 19.73% higher than the current price of $327.
Microsoft Q4 results beat analyst expectations on earnings and revenue. Revenue rose 8% year-over-year, while growth has come under 10% for three consecutive quarters. Net income is up 19% from the same quarter a year ago.
The company expects the Q1 2024 revenues to be similar, with a record $53.8-$54.8 billion in revenues.
If this plays out, the stock price should reflect the results and reach analyst estimates.
Microsoft stock technical analysis
The stock price has been trading in an ascending channel for most of 2023 before reaching a top at $366. This made higher highs on the long-term charts, meaning we could see another attempt to break $366 in the coming months.
Currently, the stock price stopped around $320, which is a support level, and bounced back. If this price level holds, another attempt at $350 and $366 is likely to follow.
But if the $320 level fails to hold the price, we could see a revisit of $300 soon.
This pullback could provide a good buying opportunity if you’re long-term bullish on the stock.
MSFT has already outperformed the S&P 500’s 16% return year-to-date, with a 36% gain during the same period.
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