Morgan Stanley Targets $1 Trillion Market Cap for Microsoft

The brokerage firm raised its MSFT price target to $130 from $110

Managing Editor
Mar 26, 2018 at 9:49 AM
facebook twitter linkedin

Shares of Microsoft Corporation (NASDAQ:MSFT) are 4.6% higher to trade at $91.21, after the Dow stock received price-target hikes from Morgan Stanley to $130 from $110, and Evercore ISI to $110 from $108. While both stand in record-high territory, the former bull note represents expected upside of 49% to last Friday's close, with the brokerage firm saying it expects Microsoft's market cap to hit $1 trillion from cloud growth and improving margins.

Today's positive price action is more of the same, with MSFT gaining 41% over the past 12 months, and hitting a record high of $97.24 on March 13. After touching this notable milestone, the shares pulled back to their rising 80-day moving average, which has served as a springboard for the equity since late 2016.

Not surprisingly, most analysts are already in MSFT's bullish corner. Of the 28 brokerages covering the shares, 22 maintain a "buy" or better rating. Plus, the average 12-month price target of $105.15 stands at a 15.6% premium to the stock's current perch.

Showing more evidence of bullish sentiment is the stock's 10-day call/put volume ratio of 3.40 at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), which ranks in the 90th percentile of its annual range. In other words, calls have been bought to open over puts at a faster-than-usual clip during the past two weeks. 

What's more, MSFT stock's Schaeffer's put/call open interest ratio (SOIR) of 0.78 ranks in the 31st  percentile of its annual range, showing a heavier-than-normal call-skew among options expiring within three months.


Minimize Risk While Maximizing Profits

There is no options strategy like this one, which consistently minimizes risk while maintaining maximum profits. Perfect for traders looking for ways to control risk, reduce losses, and increase the likelihood of success when trading calls and puts. The Schaeffer’s team has over 41 years of options trading success targeting +100% gains on every trade. Rest assured your losses are effectively limited to your initial cost at the time of making your move! Don't waste another second... join us right now before the next trade is released! 



Special Offers from Schaeffer's Trading Partners