Microsoft Stock Price Targets Soar Ahead of Earnings on Strong FCF Projections
Microsoft Corp (MSFT) is expected to generate a substantial free cash flow (FCF) of $103 billion, with analysts predicting sales of nearly $370 billion for the following year. The average price target for MSFT stock is around $658.47, close to analysts' target prices of $617.50. Currently, MSFT stock is trading at $519.50 in midday on Friday, Oct. 3.
Analysts are bullish on MSFT, raising their stock price targets ahead of earnings results. Using a 2.0% FCF yield, the projected market value of MSFT is $5,150 billion, a 33% increase from today's market cap. The projected revenue for the next 12 months is $334.9 billion, with a conservative projection using a 50% operating cash flow (OCF) margin resulting in a price target of $626.00 per share.
Looking ahead, analysts forecast revenue for the year ending June 30, 2026, to be $323.21 billion, up from a previous forecast of $322.15 billion. Despite a recent low of $495.00 on Sept. 5, MSFT stock has rebounded from a peak of $535.64 on Aug. 4. The average price target of 58 analysts until September 30, 2022, was approximately $522.26, with estimates ranging from $432.00 to $700.00.
Microsoft Corp's strong financial projections and analyst optimism suggest a positive outlook for the company. With a substantial FCF, projected sales, and a high average price target, MSFT stock is expected to perform well, despite recent fluctuations.
