Cantor Fitzgerald maintains $512 target on Microsoft stock

On Saturday, Cantor Fitzgerald reiterated its Overweight rating on Microsoft stock (NASDAQ:MSFT) with a price target of $512, falling within the broader analyst range of $430-$650. Currently trading at $450.18, Microsoft commands a market capitalization of $3.35 trillion. According to InvestingPro data, the stock is trading near its 52-week high of $468.35, with 25 analysts recently revising their earnings estimates upward for the upcoming period. The firm’s analyst, following the Microsoft Build 2025 event that took place earlier in the week, expressed increased confidence in Microsoft’s direction, particularly in its positioning as a leading AI platform.

During the conference in Seattle, Microsoft’s CEO highlighted significant advancements across the company’s product range, emphasizing the integration of AI. The analyst noted that the developments showcased at the event, especially the Model Context Protocol (MCP), suggest Microsoft is on a strong path to be recognized as a pivotal force in agentic AI. This strategic focus has contributed to Microsoft’s impressive 14.13% revenue growth over the last twelve months, with the company maintaining strong profitability metrics including a 69.07% gross margin.

The analyst pointed out several key highlights from the event, including updates to M365 Copilot and Copilot Studio that now feature multi-agent orchestration. This enhancement was described as turning workflows into agents and data into knowledge. Furthermore, improvements to Foundry were discussed, with a particular focus on Azure AI Foundry as a hub for AI app and agent development, management, and orchestration.

The introduction of a GitHub coding agent and the diversification of large language models (LLMs), including highlights of Claude/MCP and Grok.ai on Azure, were also mentioned as notable advancements. Additionally, the analyst relayed updates from conversations with developers regarding AI, summarizing the sentiment that AI is expected to be a beneficial addition for developers, despite recent workforce reduction announcements from Microsoft.

The Build 2025 conference has evidently bolstered the analyst’s view of Microsoft’s AI strategy and product integration, affirming the $512 price target on the company’s stock. InvestingPro analysis reveals Microsoft’s overall financial health score of 3.07 is rated as "GREAT," though the current P/E ratio of 34.78x suggests premium valuation. For deeper insights into Microsoft’s AI strategy and comprehensive financial analysis, including 15+ additional ProTips and detailed valuation metrics, check out the exclusive Pro Research Report available on InvestingPro.

In other recent news, Microsoft Corporation’s recent earnings and revenue performance has garnered attention, particularly in the context of its Azure cloud computing service. Analysts from RBC Capital noted a 35% growth in Azure’s Q1 performance, surpassing investor expectations, driven by enterprise growth and AI workloads. The U.S. Federal Trade Commission has abandoned its case against Microsoft’s $69 billion acquisition of Activision Blizzard (NASDAQ:ATVI), marking the end of legal disputes over the transaction. Jefferies reaffirmed its Buy rating for Microsoft, highlighting enhancements to its AI capabilities, including updates to Microsoft Copilot, expected to roll out soon. Evercore ISI also maintained an Outperform rating, raising its price target to $515, citing Microsoft’s potential in enterprise AI adoption. Microsoft’s Digital Crimes Unit has taken legal action against Lumma Stealer malware, disrupting its infrastructure with the aid of the U.S. Department of Justice. The company’s proactive measures underscore its commitment to cybersecurity in the face of evolving threats. These developments reflect Microsoft’s strategic focus on AI and cloud services, as well as its efforts in maintaining robust security measures.

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