Market Overview

Wells Fargo: Business PC Market Stabilizing, Good For Microsoft

Wells Fargo: Business PC Market Stabilizing, Good For Microsoft

Microsoft Corporation (NASDAQ: MSFT) should benefit from a stabilizing PC market and ongoing demand for business-use operating systems, Wells Fargo said Friday as it raised its target price on the software giant’s stock.

The Analyst

Wells Fargo’s Philip Winslow reiterated an Outperform rating on Microsoft and raised his price target from $130 to $135.

The Thesis

Winslow says market research data show commercial demand remains strong, even as overall PC shipment data continue to show declines year over year – though at a slower pace than a year ago.

Winslow also says Microsoft should continue to sustainably deliver EPS in the mid-to-high teens as its Azure cloud service and Office 365 suite continue to see robust growth.

“We reiterate our belief that the PC market is reaching a level of stabilization/growth after years of decline,” Winslow wrote in a note. “We believe the notable PC declines the industry has experienced should moderate throughout 2019, and as these headwinds decrease, we expect headwinds from Windows OEM revenue to Microsoft’s revenue and operating profit to similarly lessen—a key pillar of our positive thesis.”

Price Action

Shares of Microsoft traded around $120.65 Friday afternoon.

Related Links:

Azure Skies Ahead For Microsoft? Analysts Like Continued Cloud Computing Growth

Microsoft Reports Slight Q2 Earnings Beat

Latest Ratings for MSFT

Oct 2020BarclaysMaintainsOverweight
Oct 2020StifelMaintainsBuy
Oct 2020UBSInitiates Coverage OnBuy

View More Analyst Ratings for MSFT
View the Latest Analyst Ratings


Related Articles (MSFT)

View Comments and Join the Discussion!

Posted-In: Azure Cloud PC Philip Winslow Wells FargoAnalyst Color Price Target Analyst Ratings Tech Best of Benzinga

Latest Ratings

SPOTDeutsche BankMaintains250.0
AMZNDeutsche BankMaintains4,050.0
DOCUBairdInitiates Coverage On280.0
ASOGuggenheimInitiates Coverage On17.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at