Chantico Global’s Gina Sanchez: “Microsoft is a long-term hold”
- Citi sees a more than 30% upside in Microsoft Corp stock.
- Chantico's Gina Sanchez says Microsoft is a long-term hold.
- Microsoft shares jumped to a record high on Friday morning.
Microsoft Corp (NASDAQ: MSFT) hit a record high in the stock market on Friday morning after Citi picked it as a favourite in the league of mega-cap software companies and bumped its price target on MSFT to $378 per share, which translates to a more than 30% upside. Several other notable brokerages are also bullish on Microsoft.
Trader says Microsoft is a staple within your portfolio
Agreeing to Citi’s call on CNBC’s “Trading Nation”, Blue Line Capital founder Bill Baruch said late on Thursday:
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“It’s a staple within your portfolio, and you need to have it. It’s a stock that continues to have a different story that powers it to a new level.”
According to Baruch, both technicals and fundamentals speak volumes about MSFT’s future potential. Microsoft’s spending in information technology, its strong balance sheet, and a history of reporting market-beating results were a few of the reasons why he thought MSFT was a buy ahead of earnings next week.
Baruch also pointed out that MSFT recently broke out from a wedge pattern and is trending higher, as per its average directional index.
“If this thing stays above $275, there’s no question about it, you got to be long,” he added.
Gina Sanchez’ comments on CNBC’s “Trading Nation”
During the same interview with CNBC, Chantico Global CEO Gina Sanchez echoed the same bullish stance on Microsoft. She was particularly excited about the company’s cloud business that she said ‘supercharged’ amidst the Coronavirus crisis, despite being already strong before the pandemic.
Another prominent driver of revenue for Microsoft, its gaming segment, she added, also boomed last year due to the COVID-19 restrictions. Sanchez expects demand for the tech giant’s products to keep strong in the post-pandemic world as well.
“The outlook for the hybrid work environment, continued focus on business continuity – all of those feed into Microsoft’s core business. We think the name had a lot more to go before the pandemic. Coming out, it’s going to be even stronger, so we think that this is a long-term hold,” she said.