Microsoft (MSFT)
Barclays Capital trimmed its 12-month price target on Microsoft to $610.00 from $625.00 while maintaining an “Overweight” rating. The modest reduction reflects near-term valuation sensitivity and more tempered expectations for multiple expansion following the stock’s strong performance. However, Barclays’ continued Overweight stance underscores confidence in Microsoft’s durable earnings profile, recurring revenue base, and leadership in cloud infrastructure and enterprise software.
Goldman Sachs made a more positive update as analyst Gabriela Borges raised her 12 month price target on Microsoft to $655.00 from $630.00 while reiterating a “Buy” rating. Goldman’s upward revision reflects growing confidence in Microsoft’s AI-driven growth engine, particularly the monetization of generative AI across Azure, Office, and Copilot offerings. The firm also highlighted Microsoft’s operating leverage, strong free cash flow generation, and ability to scale AI investments without materially pressuring margins.
The analyst valuation updates illustrate a nuanced outlook. While some firms are exercising near-term caution following the stock’s rally, bullish analysts continue to see Microsoft as a core large-cap holding with structural growth tailwinds tied to cloud adoption and artificial intelligence. Overall sentiment remains firmly positive, with Microsoft viewed as one of the highest-quality ways to gain exposure to enterprise AI and digital transformation trends.
STA Research (StockTargetAdvisor.com) is a independent Investment Research company that specializes in stock forecasting and analysis with integrated AI, based on our platform stocktargetadvisor.com, EST 2007.
