Microsoft Shares Rise 4% After UBS Analyst Reiterates Buy Rating with $600 Target
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
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Source: Yahoo Finance
- Analyst Rating Reiteration: UBS analyst reiterated a Buy rating for Microsoft with a $600 price target, citing the Fairwater AI data centers in Atlanta and Wisconsin as key catalysts for Azure growth, contributing to a 4% rise in shares.
- Strategic Partnership: Microsoft announced a multiyear partnership with the Mercedes-AMG PETRONAS F1 Team to leverage cloud and enterprise AI technologies, enhancing operational efficiency from factory to track, thereby solidifying its leadership in AI and cloud services.
- Market Reaction Analysis: Although Microsoft's shares cooled to $468.77 after an initial pop, they still rose 3.8% from the previous close, indicating a positive market response to the news despite low volatility, with only three moves greater than 5% in the past year.
- Strong Financial Performance: The latest earnings report revealed a 13% year-over-year sales increase driven by robust demand for cloud and AI services, with operating income climbing 16%, surpassing analyst expectations and indicating strong enterprise spending amid broader budget scrutiny.
Analyst Views on MSFT
Wall Street analysts forecast MSFT stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for MSFT is 631.36 USD with a low forecast of 500.00 USD and a high forecast of 678.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
34 Analyst Rating
32 Buy
2 Hold
0 Sell
Strong Buy
Current: 451.140
Low
500.00
Averages
631.36
High
678.00
Current: 451.140
Low
500.00
Averages
631.36
High
678.00
About MSFT
Microsoft Corporation is a technology company that develops and supports software, services, devices, and solutions. Its Productivity and Business Processes segment consists of products and services in its portfolio of productivity, communication, and information services, spanning a variety of devices and platforms. It comprises Microsoft 365 Commercial products and cloud services; Microsoft 365 Consumer products and cloud services; LinkedIn, and Dynamics products and cloud services. The Intelligent Cloud segment consists of its public, private, and hybrid server products and cloud services. It comprises server products and cloud services, including Azure, and enterprise and partner services, including Enterprise Support Services. Its More Personal Computing segment primarily comprises Windows and Devices, including Windows OEM licensing; Gaming, including Xbox hardware and Xbox content; Search and news advertising, comprising Bing and Copilot, Microsoft News, and Microsoft Edge.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
