Microsoft ( MSFT ) has been analyzed by 15 analysts in the last three months, revealing a diverse range of perspectives from bullish to bearish.

The table below provides a concise overview of recent ratings by analysts, offering insights into the changing sentiments over the past 30 days and drawing comparisons with the preceding months for a holistic perspective.

Providing deeper insights, analysts have established 12-month price targets, indicating an average target of $509.2, along with a high estimate of $550.00 and a low estimate of $425.00. This upward trend is evident, with the current average reflecting a 1.59% increase from the previous average price target of $501.21.

Deciphering Analyst Ratings: An In-Depth Analysis

The perception of Microsoft ( MSFT ) by financial experts is analyzed through recent analyst actions. The following summary presents key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

Action Taken: Analysts frequently update their recommendations based on evolving market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Microsoft ( MSFT ). This information provides a snapshot of how analysts perceive the current state of the company.

Rating: Analyzing trends, analysts offer qualitative evaluations, ranging from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Microsoft ( MSFT ) compared to the broader market.

Price Targets: Analysts explore the dynamics of price targets, providing estimates for the future value of Microsoft's ( MSFT ) stock. This examination reveals shifts in analysts' expectations over time.

To gain a panoramic view of Microsoft's ( MSFT ) market performance, explore these analyst evaluations alongside essential financial indicators. Stay informed and make judicious decisions using our Ratings Table.

Stay up to date on Microsoft ( MSFT ) analyst ratings.

Get to Know Microsoft Better

Microsoft ( MSFT ) develops and licenses consumer and enterprise software. It is known for its Windows operating systems and Office productivity suite. The company is organized into three equally sized broad segments: productivity and business processes (legacy Microsoft Office ( MSFT ), cloud-based Office 365, Exchange, SharePoint, Skype, LinkedIn, Dynamics), intelligence cloud (infrastructure- and platform-as-a-service offerings Azure, Windows Server OS, SQL Server), and more personal computing (Windows Client, Xbox, Bing search, display advertising, and Surface laptops, tablets, and desktops).

Microsoft: A Financial Overview

Market Capitalization Analysis: The company's market capitalization surpasses industry averages, showcasing a dominant size relative to peers and suggesting a strong market position.

Revenue Growth: Microsoft ( MSFT ) displayed positive results in 3 months. As of 31 December, 2024, the company achieved a solid revenue growth rate of approximately 12.27%. This indicates a notable increase in the company's top-line earnings. As compared to competitors, the company surpassed expectations with a growth rate higher than the average among peers in the Information Technology sector.

Net Margin: The company's net margin is a standout performer, exceeding industry averages. With an impressive net margin of 34.62%, the company showcases strong profitability and effective cost control.

Return on Equity (ROE): Microsoft's ( MSFT ) ROE excels beyond industry benchmarks, reaching 8.17%. This signifies robust financial management and efficient use of shareholder equity capital.

Return on Assets (ROA): Microsoft's ( MSFT ) ROA stands out, surpassing industry averages. With an impressive ROA of 4.56%, the company demonstrates effective utilization of assets and strong financial performance.

Debt Management: Microsoft's ( MSFT ) debt-to-equity ratio is below the industry average. With a ratio of 0.21, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

Understanding the Relevance of Analyst Ratings

Benzinga tracks 150 analyst firms and reports on their stock expectations. Analysts typically arrive at their conclusions by predicting how much money a company will make in the future, usually the upcoming five years, and how risky or predictable that company's revenue streams are.

Analysts attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish their ratings on stocks. Analysts typically rate each stock once per quarter or whenever the company has a major update.

In addition to their assessments, some analysts extend their insights by offering predictions for key metrics such as earnings, revenue, and growth estimates. This supplementary information provides further guidance for traders. It is crucial to recognize that, despite their specialization, analysts are human and can only provide forecasts based on their beliefs.

Which Stocks Are Analysts Recommending Now?

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This article was generated by Benzinga's automated content engine and reviewed by an editor.