Microsoft shares touch a fresh all-time high on Wednesday as KeyBanc boosts price target on the stock on cloud and digital potential

KeyBanc earlier this week revised up its price target on Microsoft Corp (MSFT) to $141 from $125, as it cited improving confidence in the tech giants cloud and digital strategy. The firm also maintained an “Overweight” rating on the stock.

Microsoft shares closed higher for the seventh time in the past ten trading sessions on NASDAQ on Wednesday. It has also been the sharpest daily surge since April 1st. The stock went up 0.83% ($1.00) to $121.77, after touching an intraday high at $121.87 and also a fresh all-time high.

Shares of Microsoft Corporation have surged 19.89% so far in 2019 compared with a 15.70% gain for the benchmark index, S&P 500 (SPX).

In 2018, Microsoft’s stock went up 18.74%, thus, it again outperformed the S&P 500, which registered a 6.24% loss.

“We see the March quarter as another positive milestone and part of a broader multi-year cloud and digital journey that has structurally improved the business model drivers and prospects of sustaining double-digit annual growth,” KeyBanc analyst Brent Bracelin wrote in a note to clients.

“O365 subscription ARR could top $20B for the first time, while Azure could top $12B. Robust commercial cloud growth of 43% could push the cloud mix to 33% vs. 5% in FY15. We are raising our estimates and PT to $141 on increasing confidence in Microsoft’s cloud and digital strategy,” Bracelin noted.

The tech company is expected to report first-quarter results on April 24th. The median forecast by analysts points to revenue of $29.85 billion and earnings of $1.00 per share.

According to CNN Money, the 30 analysts, offering 12-month forecasts regarding Microsoft Corp’s stock price, have a median target of $130.00, with a high estimate of $160.00 and a low estimate of $75.00. The median estimate represents a 6.76% upside compared to the closing price of $121.77 on April 17th.

The same media also reported that 28 out of 34 surveyed investment analysts had rated Microsoft Corp’s stock as “Buy”, while 3 – as “Hold”. On the other hand, 1 analyst had recommended selling the stock.

Weekly Pivot Levels

By using the traditional method of calculation, the weekly levels of importance for Microsoft Corporation (MSFT) are presented as follows:

Central Pivot Point – $120.17
R1 – $121.76
R2 – $122.57
R3 – $124.16
R4 – $125.75

S1 – $119.36
S2 – $117.77
S3 – $116.96
S4 – $116.15

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