) for free daily and weekly newsletters, in-depth industry coverage and analysis, and access to ProStation – a powerful tool to help you manage your clients’ portfolios.I am a long-term holder of Microsoft stock. It has tripled in value in recent years and I am in a quandary as to whether I should take the profit or continue to hold the stock. I hold it in my registered retirement savings plan and I do not need the proceeds. What do you think?First, let’s get something straight.
So the question you should be asking yourself is: Based on Microsoft’s future prospects, do the shares offer attractive return potential at their current price? Does this guarantee that Microsoft’s shares will continue to rise? No. But analysts make a compelling case that the company has lots of growth ahead thanks to strength in products such as Office 365 and Azure, a cloud-computing platform that provides a wide range of services to supplement or replace on-premise servers.
Just this week, brokerage Cowen & Co. initiated coverage of Microsoft with a buy rating and US$150 price target. Cowen analyst Nick Yako said Microsoft has the potential to post an additional US$100-billion of revenue by fiscal 2025, with Office 365 and Azure the key growth drivers. “Despite its recent success, we see further opportunity ahead, as we believe double-digit annual revenue and earnings growth [from fiscal 2020 to fiscal 2025] is more than achievable,” he said in a note.
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