Microsoft Price Target Raised to $613 by Citi
Warning! GuruFocus has detected 7 Warning Sign with MSFT.
According to Citi's research note published Tuesday, the firm expects another quarter of positive revisions, with Azure numbers for the fourth and first fiscal quarters projected to exceed consensus. The new target is based on 30 times fiscal year 2028 earnings per share, discounted back.
The company's stock recently traded at $510.06, close to its 52-week high of $514.64, and has gained 21.48% year to date. Citi's internal surveys pointed to strong performance across Microsoft's Copilot and Dynamics platforms. The bank's estimate for fiscal year 2026 Azure growth is about three percentage points higher than market expectations.
Citi said Microsoft remains its top pick in enterprise software due to its artificial intelligence exposure, business model quality, and long-term pricing and margin strength. BofA Securities and RBC Capital also raised or reiterated their bullish outlooks in recent weeks, according to publicly available research notes.
Microsoft's fiscal fourth-quarter earnings report is expected in late July, which will serve as the next major catalyst for the stock.
This article first appeared on GuruFocus.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Entrepreneur
4 minutes ago
- Entrepreneur
Boost Team Productivity and Security With Windows 11 Pro, Now $15 for Life
Ideal for entrepreneurs and small-business owners who are looking to streamline their PC setup. Disclosure: Our goal is to feature products and services that we think you'll find interesting and useful. If you purchase them, Entrepreneur may get a small share of the revenue from the sale from our commerce partners. If you run your business from a PC—or manage a team that does—then your operating system isn't just background software. It's your daily control hub, the foundation for security, productivity, and system compatibility. That's why I recently upgraded to Microsoft Windows 11 Pro, now available for only $14.97 (reg. $199) as a lifetime license. Windows 11 Pro isn't just a cosmetic upgrade. It builds on the Windows 10 foundation with performance improvements, enhanced multitasking features, and business-level security—all of which make a noticeable difference when you're managing clients, projects, or internal systems. I've personally seen faster boot times, smoother app switching, and stronger integration with cloud platforms like OneDrive and Microsoft 365. The productivity features alone have been a big win. Snap Layouts and virtual desktops make it easier to organize workstreams—whether I'm reviewing contracts on one screen or tracking project timelines on another. And with built-in BitLocker encryption and remote desktop access, I can safely access files and devices when I'm on the go or working remotely. From an IT and business management perspective, the Pro version gives you access to key features like Group Policy, Hyper-V virtualization, and enterprise-grade identity management. It's ideal for small business owners scaling their operations or freelancers managing client data. There's also an upgraded AI assistant, Copilot. It's powered by ChatGPT-4o and can help with image and article generation, answer your questions, and even help you study for certification exams. Best of all, this is a one-time purchase—no subscription or recurring fees ever again. That means predictable costs, fewer licensing headaches, and software that won't suddenly become inaccessible due to missed renewals. Whether you're looking to upgrade your own PC, equip a small team, or prep a new workstation without blowing your software budget, this deal offers a low-lift way to future-proof your setup. Equip your work or office devices when you grab one of these Windows 11 Pro lifetime licenses now for just $14.97 (reg. $199), a fraction of the standard cost, for a little while longer. Microsoft Windows 11 Pro See Deal StackSocial prices subject to change.
Geek Wire
4 minutes ago
- Geek Wire
Have we hit ‘Peak AI'? Microsoft, Amazon, and a pivotal week for Seattle tech
This week on the GeekWire Podcast: Microsoft soars past Wall Street expectations, briefly hitting a $4 trillion valuation, while Amazon faces sharper scrutiny over its AI strategy. We break down the contrasting earnings results, analyst reactions, and what it all means for the future of AI — and Seattle's place in it. Plus: insights from Microsoft's Mustafa Suleyman on the future of Copilot, a throwback lesson from the Zune era, and a guestbook entry that shows just how mainstream ChatGPT has become. Related stories and links Recommended listens (final segment) Subscribe to GeekWire in Apple Podcasts, Spotify, or wherever you listen.
Yahoo
an hour ago
- Yahoo
This trader is sounding the alarm over stocks. Why he's pressing the sell button now.
Wall Street headed into payrolls Friday with a bit of concern. The previous session saw very bullish reactions to Meta META and Microsoft MSFT earnings. But after surging to a fresh intraday high, the S&P 500 SPX instead finished down on the day. Granted, it was the end of a month, when some technical portfolio fiddling can happen. And there may have been worries about the looming tariff deadline on Aug. 1. Still, for the major indices to relapse on what was broadly agreed to be positive corporate backdrop is not a good look. 'I told him that wouldn't fly': My 90-year-old mother's adviser pushed her to change her beneficiaries. What is going on? Social Security wants to make a change that would cause 3.4 million more people to have to visit its field offices Amazon's stock is falling, as this trend from earnings has investors worried Indeed, it's the kind of action that will encourage Macro Tourist blog author and former institutional trader Kevin Muir, who says he's going 'back to the short side.' When Muir spoke to MarketWatch a few weeks ago, he said he was becoming increasingly wary of the market. At the time the S&P 500 SPX was trading around 6,250. But early on Thursday it traded above 6,400, and in a new blog post, he says the 'terrific earnings reports from Meta and Microsoft' have given him the opportunity 'to pull the trigger on a sell call.' 'There are a bunch of reasons for my shift in tone, but with the good news from MAG 7 earnings, and the tariff deal 'wins' being announced by Trump, we've hit a point where much of the good news is baked into the price,' says Muir. His longer-term concerns about the market remain; investors' over-allocation to the U.S. market, their severe concentration in big tech, economic policy volatility, and what he terms the extended nature of economic expansion. Rich valuations are also a problem, says Muir. In April, at the height of the Liberation Day tariff worries, analysts sharply cut their 12-month forward earnings per share estimates, while uncertainty saw the multiple applied to those earnings drop from 22.5 to 18 times. That gave the market a lower valuation bar to hurdle. But now earnings estimates are at all-time highs and the earnings multiple is back to 22.5. 'Of course, maybe this time 22.5 times doesn't prove to be the top in multiples, or maybe earnings estimates find a way to accelerate even more from here, but the risk/reward is now skewed to the downside,' says Muir. And he now reckons this could all coalesce into one of the market's fairly regular summer swoons. So far this year, the market has had no respect for the 'sell in May and go away' mantra, Muir notes. There was a 3.4% correction in mid May, but it lasted less than a week. This got him thinking: How often does the market just rally all summer long? 'It certainly feels like we're never going to correct, but is this a reasonable assumption?' Muir asks. He created the table below showing all the summer drawdowns over past 30 years, highlighting all the pullbacks of less than 5% in blue, and the only dip smaller than the latest one in purple. Muir notes that all the less-than-5% corrections started in mid-June or later. Not one started in May. 'I suspect that the current mid-May correction will not prove to be the maximum summer drawdown. Although there is nothing stopping the rally from continuing, the longer it continues, the more overbought it becomes, and the larger the inevitable correction,' says Muir. He also believes that buying by volatility-control funds currently is slowing down, removing another support for the market. So it's time to short the current rally, he reckons. (Note, he wrote this before Friday's fall in equity index futures). 'If I am wrong, I probably lose 100 S&P 500 points to the upside, and if I am right, we get a quick whoosh for 300+ handles to the downside,' he says. U.S. stock-indices SPX DJIA COMP are dropping at the opening bell as benchmark Treasury yields BX:TMUBMUSD10Y fall after the jobs data. The dollar index DXY is lower, while oil prices CL.1 retreat and gold GC00 is trading around $3,355 an ounce. Key asset performance Last 5d 1m YTD 1y S&P 500 6339.39 -0.38% 0.96% 7.78% 16.39% Nasdaq Composite 21,122.45 0.31% 2.53% 9.38% 22.85% 10-year Treasury 4.387 -0.50 3.60 -18.90 59.40 Gold 3346.1 0.23% -0.01% 26.78% 34.59% Oil 68.89 4.13% 2.56% -4.15% -10.45% Data: MarketWatch. Treasury yields change expressed in basis points Need to Know starts early and is updated until the opening bell, but to get it delivered once to your email box. The emailed version will be sent out at about 7:30 a.m. Eastern. U.S. president Donald Trump hit dozens of countries with tariffs but yet again extended his deadline, from August 1 to August 7. Stock markets in Asia and Europe fell on the news. Trump has also again lambasted Federal Reserve Chair Jerome Powell. In a Truth Social message the president said the Fed board 'should assume control' of policy. The U.S. nonfarm payroll report for July showed 73,000 jobs were created, below forecasts for 100,000. And June's number was revised down from 147,000 to just 14,000. The unemployment rate rose from 4.1% in June to 4.2%. Other U.S. economic data due Friday include the ISM manufacturing survey for July; construction spending for June; and final consumer sentiment for July, all released at 10 a.m. Apple shares AAPL are higher after revenues topped estimates, but stock AMZN is lower after AI spending weighed on profit growth. Ray Dalio has sold his last remaining stake in Bridgewater Associates, and stepped off the board of the hedge fund that made him a billionaire. Why Ford's made-in-America strategy hurts it in Trump's trade war. How an 'Entrepreneur of the Year' brought the first big bust to AI boom. Investors glimpse pay-off for Big Tech's mammoth spending on AI arms race. For the most part, the S&P 500 has been trading inversely to the dollar index, notes Michael Kramer at Mott Capital Management. 'Before May 9, when the dollar declined, stocks also fell; after May 9, as the dollar weakened, stocks moved higher. Now, with the dollar gaining strength again, equities are beginning to struggle,' he says. Here were the most active stock-market tickers on MarketWatch as of 6 a.m. Eastern. Ticker Security name NVDA Nvidia TSLA Tesla AMZN AAPL Apple FIG Figma AMD Advanced Micro Devices GME GameStop PLTR Palantir Technologies META Meta Platforms MSFT Microsoft Virginia's swimming wild ponies. Oasis fans down a record 250,000 pints at Wembley gig. 2,500-year-old Siberian 'ice mummy' had intricate tattoos. There will be gold! Trump to build $200 million 'Beautiful Ballroom' at the White House. For more market updates plus actionable trade ideas for stocks, options and crypto, . Will your spouse automatically inherit your 401(k)? 10 stocks favored to gain up to 30% in a sector that has missed this year's rally 'I worked at 14, had an 8.8% mortgage rate and drove used cars': Did boomers really have it easier than millennials? Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
