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Investing.com - Evercore ISI raised its price target on Microsoft (NASDAQ:MSFT) to $545.00 from $515.00 on Friday, while maintaining an Outperform rating on the stock. The tech giant, currently trading at $510.88 and near its 52-week high of $514.64, has seen analyst targets ranging from $432 to $700. According to InvestingPro data, Microsoft commands a market capitalization of $3.8 trillion and trades at a P/E ratio of 39.37x.
The research firm adjusted its fiscal year 2026 estimates to better reflect recent trends in Microsoft’s Azure cloud computing service and the company’s headcount adjustments.
Evercore ISI raised its Azure growth and cost of goods sold (COGS) projections, while offsetting these increases with lower expected operating expense growth.
The new price target represents a multiple of 35 times calendar year 2026 earnings per share for the technology giant.
Evercore ISI believes Microsoft’s momentum in Azure and artificial intelligence will continue to drive "durable double-digit top and bottom line growth" that supports a higher multiple for the stock. With a strong analyst consensus rating of 1.39 and robust financial health metrics, Microsoft continues to demonstrate its market leadership position.
In other recent news, Microsoft has been at the forefront of several significant developments. GitHub, a Microsoft subsidiary, launched GitHub Spark, a platform designed to streamline the development of full-stack applications using natural language commands. This tool aims to simplify the app development process by reducing setup time, incorporating AI models from providers like OpenAI and Meta (NASDAQ:META). Meanwhile, a Microsoft SharePoint vulnerability was reported to have impacted systems at the U.S. Department of Energy, including those associated with the National Nuclear Security Administration. The department noted minimal impact due to its robust cybersecurity systems and use of Microsoft M365 cloud services.
Additionally, UBS has raised its price target for Microsoft to $600 from $500, maintaining a Buy rating. The firm cited potential growth in Azure cloud services and anticipated positive effects from recent workforce reductions on future margins. In security news, Microsoft has identified Chinese hackers exploiting vulnerabilities in SharePoint servers, prompting the company to release security updates. These developments come as Microsoft continues to address both opportunities and challenges in the tech landscape.
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