Here’s Why Microsoft Corporation (MSFT) Still Has Growth Potential

Several reports have shown concerns that Microsoft (NASDAQ:MSFT) might be running out of growth catalysts as its Cloud transformation is almost coming to an end after 3 years. But analysts think that the Redmond-based tech giant has just started to reap the benefits of the transformation, and it has many other catalysts on the horizon.

Fort Pitt Capital’s Kim Forrest recently said in a report that Microsoft is currently at the initial stages of the migration cycle, in which companies around the world are moving their data towards the Cloud. Microsoft is on track to make its Cloud business a $20 billion annual cash machine. Analysts also think that Microsoft is set to gain heavily from the AI revolution. Earlier this year Microsoft announced that AI will be its top business priority.

Based on the analysts' estimates both the revenue and the net result would be the highest in years. For this year Microsoft 's revenue will be around 104,32 billion USD. This is according to the average of the analysts' estimates. The expected revenue would be a record for the company. This is hugely more than 2016's revenue of 89,95 billion USD.

Historical revenues and results Microsoft plus estimates 2017

financial analysis

The analysts anticipate for 2017 a record net profit a 24,42 billion USD. The majority of the analysts expects for this year a profit per share of 3,17 USD. The price-earnings-ratio equals 23,8.

For this year the analysts expect a dividend of 1,7 USD per share. Thus the dividend yield equals 2,25 percent. The average dividend yield of the software & services companies equals a moderate 0,14 percent.

Newest target prices around 64 USD

The most recent recommendations for the software & services company are from RBC Capital Markets, Independent Research and Jefferies & Co..

Based on the current number of shares Microsoft 's market capitalization equals 589,04 billion USD.

On Tuesday the stock closed at 75,44 USD.

Historical stock prices Microsoft

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