Citi has revised its price target for Microsoft (MSFT, Financial), reducing it from $497 to $480, while maintaining a Buy rating on the stock. This adjustment comes as Microsoft continues to perform well relative to other large-cap stocks, particularly in the context of macroeconomic challenges fueled by tariff concerns. Investors are increasingly turning to Microsoft as a more defensive investment option.
Reflecting a cautious outlook in anticipation of a broader economic slowdown, Citi's analyst has lowered Microsoft's fiscal 2026 earnings estimates by an average of three points across its main business segments. While there have been some positive signs, including early renewals in Microsoft's Azure cloud services, the uptake of its CoPilot service has not met expectations.
For the third fiscal quarter, Citi predicts that Azure's growth will be near the lower end of the 31% guidance range, and indicates that growth might slow further in the fourth quarter. Despite these concerns, the analyst suggests that the recent decline in Microsoft's stock price following its second-quarter results may present a more attractive buying opportunity for investors.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 49 analysts, the average target price for Microsoft Corp (MSFT, Financial) is $492.36 with a high estimate of $650.00 and a low estimate of $423.00. The average target implies an upside of 33.87% from the current price of $367.78. More detailed estimate data can be found on the Microsoft Corp (MSFT) Forecast page.
Based on the consensus recommendation from 60 brokerage firms, Microsoft Corp's (MSFT, Financial) average brokerage recommendation is currently 1.8, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Microsoft Corp (MSFT, Financial) in one year is $497.43, suggesting a upside of 35.25% from the current price of $367.78. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Microsoft Corp (MSFT) Summary page.
