What sounds like the most recent gossip heard in high school hallways about who will win class president is actually the latest financial news about who will become Microsoft Corporation (NASDAQ:MSFT) next CEO. With the recent announcement that Ford Motor Company (NYSE:F) CEO Alan Mulally plans to stay with Ford through the end of 2014, investors are starting to question whether Mulally is still in the running for the coveted position or, if he is in fact, off the ticket.
Some analysts are advising HOLD Microsoft Corporation (NASDAQ:MSFT), despite the ambiguity about who is next in line for leadership, while other analysts are more focused on new Microsoft business trends and recommend BUY Microsoft.
Israel Hernandez of MKM Partners reiterated a Neutral rating and a $30 price target factoring in Mulally as the new company leader. With Mulally as the forerunner, Israel thinks that, “Wall Street likely sees him as a major change agent and as someone who, in their words, would attack Microsoft’s ‘sacred cows’ like online search and the Xbox.” On the flip side, Israel also believes that, “investors would also expect him to change the culture at Microsoft Corporation, introduce ‘more financial discipline,’ and turn the company’s focus to enterprise and cloud.” With his sights set on Mulally as the next Microsoft CEO, Israel recommends HOLD MSFT. Israel is ranked 289 out of 2296 analysts and has a 3.3% average over S&P-500.
Microsoft’s key business decisions
At the same time that analysts are discussing the future of Microsoft’s commanding force, other analysts are more focused on key business decisions. Jefferies analyst Ross Macmillan believes the company will be successful due to the transition of key enterprises to the cloud. “While we acknowledge that a strong operations focused CEO could be helpful for Microsoft Corporation, our positive view on the stock is based primarily on the successful transition of key enterprise assets to the cloud, which we think will derive higher value realization for the aggregate business.” Not only does this transition look promising, but also, “the F1Q14 earnings report showed Windows performing better than expected and the new operating structure provides better transparency on the best assets.” Ross recommends BUY Microsoft Corporation (NASDAQ:MSFT) and is ranked 1426 out of 2296 analysts.
Even though it might sounds like teenage gossip, analysts are making strong arguments about what you should do with your Microsoft Corporation (NASDAQ:MSFT) stock during this time of leadership and business transition. But, before you take anyone’s advice on the matter, you should be sure you know who to trust. Download TipRanks to review analyst recommendation histories and start making informed financial decisions today!