UBS raises Microsoft stock price target to $675 on Azure strength
UBS has increased its price target for Microsoft stock (NASDAQ:MSFT) to $675 from $525. The firm maintains a Buy rating, signaling confidence despite the company's first-quarter earnings report. Analyst Karl Kierstead pointed out that Microsoft's shares have surged 39% since the June quarter earnings release, with a 30% return over the past six months.
The stock is trading near its 52-week high of $553.72, currently at $533.56. UBS believes Azure and M365 segment growth now exceed investor expectations, and the company's fundamentals support these higher expectations. The valuation multiple of 23 times the non-GAAP earnings per share in 2027 is not considered stretched, and Microsoft is currently trading at a P/E ratio of 29.71.
The firm introduced a new Microsoft model to account for the recent re-classification and provided a comprehensive Pro Research Report for investors. Other analysts have also raised their price targets for Microsoft, citing strong Azure performance, growth expectations for OpenAI, and potential monetization of enterprise AI.
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