Eos Energy stock falls after Fuzzy Panda issues short report
Investing.com - BMO Capital has lowered its price target on Microsoft (NASDAQ:MSFT) to $625.00 from $650.00 while maintaining an Outperform rating. The tech giant currently trades at a P/E ratio of 39.52 with a market capitalization of approximately $4.03 trillion, according to InvestingPro data.
The firm noted that Microsoft’s Azure cloud service posted 39% year-over-year growth in constant currency, which exceeded guidance by two percentage points but likely fell short of buy-side expectations of approximately 40%.
BMO Capital highlighted that Microsoft’s bookings growth remained robust, supported by OpenAI deals and a recent $250 billion incremental OpenAI commitment that has not yet been included in the company’s backlog.
The research firm also pointed to Microsoft’s margin performance as "impressive," with margins expanding 220 basis points year-over-year despite mix headwinds. This aligns with Microsoft’s strong financial health, rated as "GREAT" by InvestingPro’s overall score.
BMO Capital attributed its price target reduction to lower revenue guidance from Microsoft and higher capital expenditure estimates, while reaffirming its positive outlook on the stock with the maintained Outperform rating. Despite this reduction, analyst targets range from $483 to $710, with consensus remaining strongly bullish. InvestingPro analysis suggests Microsoft is slightly overvalued at current levels, with the stock trading near its 52-week high of $555.45. Explore Microsoft’s comprehensive Pro Research Report, available among 1,400+ top stocks on InvestingPro.
In other recent news, Microsoft Corporation has reported its earnings for the first fiscal quarter of 2026, surpassing market expectations. The company achieved earnings per share of $4.13, which exceeded the forecast of $3.66, marking a notable 12.84% surprise. Revenue also outperformed projections, reaching $77.7 billion compared to the anticipated $75.32 billion. This strong performance was attributed to Microsoft’s expanding cloud and AI businesses. These developments reflect investor confidence in Microsoft’s strategic direction. Additionally, analysts have taken note of Microsoft’s performance, although specific upgrades or downgrades were not detailed in the recent reports. These recent developments emphasize Microsoft’s continued growth and success in the technology sector.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.