According to information provided by Morgan Stanley for investors, Microsoft is included into a list of the company’s most preferred names in the area of software development.
At the moment, the technological corporation’s stock price target is estimated to be at $354.
As it was written in the company's message, Microsoft was highly evaluated because of several reasons, with the most prominent of them being “strong secular positioning” and “a reasonable valuation.”
Morgan Stanley also stated that the Microsoft company is probably in a better position in comparing to many other companies, despite a noted reduction in a forecast of software budget growth in 2022 made by CIOs. As it was projected in their latest forecast, the budget growth is now expected to be about 3.7%, which is lower than the previously expected value of about 4.1% forecasted in the previous quarter. Morgan Stanley told that Microsoft is still occupying such niches in the software segment that are both promising and sustainable. This would provide the company with greater protection than its competitors would have in case of macroeconomic decline.
Summarizing the above, the company concluded that the mentioned facts result in making the technological corporation in question "a defensive name under the current market conditions."