Bank of America/Merrill Lynch reported on Tuesday that they have reduced their estimates for software company, Microsoft Corporation(MSFT).
Analysts from the firm reported that they have lowered their estimates for MSFT, giving the company a price target of $35, with a rating of “Buy.” This price target suggests a 24% increase over the stock’s current price of $26.50.
The firm has lowered estimates due to a decline in PC demand.
Microsoft shares were mostly flat during premarket trading Tuesday. The stock is up 1.81% YTD.
The Bottom Line
Shares of Microsoft (MSFT) have a 3.48% dividend yield, based on last night’s closing stock price of $26.43. The stock has technical support in the $24-$25 price area. If the shares can firm up, we see overhead resistance around the $28-$30 price levels.
Microsoft Corporation(MSFT) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.