Would you like to take home a $17.2 million salary this year? Well, if you are the new CEO of Microsoft (MSFT), Satya Nadella, this prized income will be yours. As announced on February 4th, Satya, who is the head of Cloud and Enterprise at Microsoft, will be replacing Steve Ballmer as Chief Executive of Microsoft. Satya is a proven leader with sound business aptitude, and analysts are taking note of his new role, recommending either HOLD or BUY MSFT.
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Following Satya’s appointment as the new CEO, Morgan Stanley analyst Keith Weiss recommended HOLD MSFT. Based on conversations with lead Microsoft executives, Keith believes “Satya could be more than a ‘safe choice’ as the next CEO.” Due to “his solid technical background and grasp of how Microsoft works are well understood.” But Keith also feels that Satya’s “strong business savvy and willingness to embrace change may be underestimated by investors.” Keith has a 64% success rate of recommendations, with a 7.2% average return over S&P-500.
Analyst Ed Maguire of Credit Agricole believes Satya is a “highly qualified and conservative choice” and has no doubt with him in power, recommending BUY MSFT accordingly. Ed notes that while Satya may not be someone who will “rock the boat”, his “pragmatic streak means there might be a more open stance toward changes, particularly in areas investors regard as key, such as uses of cash and potential divestitures.” Staya’s achievements in helping build a $40 billion corporate business “have been a core reason we’ve supported the stock.” Ed is ranked 1777 out of 2381 and has a 37% success rate of recommended stocks.
Nomura Holdings analyst Rick Sherlund also recommends BUY MSFT, believing Satya to be “a great cultural fit at Microsoft”. Rick believes Satya is “a developer and technical leader that has good vision and has been instrumental in positioning the company in some of the more important strategic markets for enterprise cloud computing.” With Mr. Gates by his side, Satya will have the power and strategy to reposition the company for growth. Rick is ranked 1343 out of 2381 analysts and has a 46% success rate of recommended stocks.
While Satya has big shoes to fill, these analysts think he’s up for the challenge. To continue following analyst recommendations of MSFT as Satya transitions into his new position, as well as other analyst recommendations, download TipRanks, and start making informed decisions about your financial portfolio.