Shares of Microsoft Corp (NASDAQ: MSFT) are up more than 50% this year – an exciting rally that would make investors want to take profit and get out. But Wells Fargo is convinced there’s more to come in the months ahead.
Micahel Turrin sees an over 15% upside in MSFT
In a note on Monday, Wells Fargo’s Micahel Turrin assumed coverage of MSFT with an “overweight” rating and a Street high price target of $400 a share that represents an over 15% upside from here.
The analyst sees a “bright future ahead” for the tech giant as it continues to expand its footprint in cybersecurity and cloud computing. Other reasons why he likes Microsoft include IT spend and an “impressive margin profile”.
The rating comes almost a month after Microsoft reported another blowout quarter that saw earnings top $20 billion for the first time, fuelling a 10% gain in the stock up till now.
Jim Cramer agrees with the bullish call
On CNBC’s “Squawk on the Street”, Jim Cramer agreed with the bullish call and dubbed the stock too good to sell.
One of the most unsung heroes of this bull market is Microsoft. It’s an argument against an index fund. Satya Nadella has put together an amazing team. I frankly am in awe of this company. It’s untouchable; you can’t sell this thing, it’s just too good.
Cramer also lauded peer Apple Inc that hit a record $165 a share this morning – an 8.0% gain since last Thursday when news broke out that it wanted to launch its first fully autonomous vehicle by 2025. The recent rally in AAPL puts its year-to-date return right next to the benchmark.
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