Windows 10 set to change Microsoft’s standing

On Monday 26 January, before the US markets open, Microsoft is set to announce its second-quarter figures.

Microsoft sign
Source: Bloomberg

Microsoft has just announced the launch of Windows 10, its new operating system that will be available on PCs, tablets and smartphones. It is early days but the reception from the tech-savvy press has been very encouraging, and unlike previous updated versions optimism over its popularity is high.

The company’s Q2 adjusted earnings per share is expected to improve, rising from $0.65 up to $0.749. Sales are also called up from $23.201 billion to $26.328 billion. These should help see its pretax profits increase, from $5.896 billion up to $7.607 billion.

As you would expect there are a large number of analysts covering the company and the general consensus is positive, with 24 rating it as a buy, 19 as a hold and only four with a sell recommendation. The average price target for Microsoft over the next twelve months is $50.35, still offering a 10% upside from the current share price.

The last 18 months have seen a solid bullish trend in place and at the moment Microsoft is at the lower end of the range. The new software package, along with other new product offerings, should see a return to the higher end of this range. Only a break below the 200-day moving average would knock this more optimistic stance.

Microsoft chart

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