FBR analyst Daniel Ives weighed in today with a favorable report on shares of Microsoft Corporation (NASDAQ:MSFT), as market volatility and worries about China and overall growth have been overhangs for Microsoft and its tech brethren over the past month. The analyst maintained an Outperform rating on the stock with a price target of $53, which represents a potential upside of 22% from where the stock is currently trading.

Ives wrote, “We believe cloud momentum and a healthy Windows 10 uptake out of the gate is setting the stage for a transformational cloud transition for Satya Nadella and company over the next few years. With Windows 10 on pace to be installed on more than 100 million devices worldwide by the end of September based on our estimates, we believe the downloadable, free strategy and enhanced features around this nextgeneration platform are resonating with developers, consumers, and enterprises.”

The analyst continued, “With a more mobile workforce/consumer transitioning away from the PC, we think there are massive headwinds in Microsoft’s bread-and-butter PC business, making it crucial that the Windows 10 cloud approach opens up new growth avenues for the Windows business to help offset some of the license decline, a strategy bearing early signs of success in the field. Our recent checks also indicate that Microsoft is experiencing strong adoption for its core cloud products (e.g., Office 365/Azure), a positive sign heading into FY16.”

According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Daniel Ives has a total average return of 3.4% and a 43.2% success rate. Ives has a -2.3% average return when recommending MSFT, and is ranked #1082 out of 3748 analysts.

Out of the 30 analysts polled by TipRanks, 17 rate Microsoft stock a Buy, 9 rate the stock a Hold and 4 recommend Sell. With a return potential of 15.6%, the stock’s consensus target price stands at $50.12.


MSFT Chart