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Investing.com - Cantor Fitzgerald has raised its price target on Microsoft (NASDAQ:MSFT) to $581.00 from $512.00 while maintaining an Overweight rating on the stock. The tech giant, currently trading near its 52-week high of $508.30, has demonstrated strong momentum with a 20% return year-to-date.
The price target increase represents a premium to Microsoft’s one-year next-twelve-months average of approximately 11x revenue and 30x price-to-earnings ratio. The new target values the company at 12.5x calendar 2026 revenue and 35x price-to-earnings. According to InvestingPro data, Microsoft currently trades at a P/E ratio of 39x and maintains strong profitability with a 69% gross margin.
Cantor Fitzgerald cited recent acceleration in Microsoft’s Azure cloud computing business as a key factor behind the more bullish outlook. The firm’s analysis indicates Microsoft is well-positioned as a leading platform in agentic artificial intelligence.
Industry checks conducted by the research firm suggest positive momentum for Microsoft will continue through the second half of calendar year 2025.
The price target adjustment comes as Microsoft continues to expand its cloud and AI offerings in an increasingly competitive technology landscape.
In other recent news, Microsoft has seen significant activity with multiple analyst firms adjusting their price targets for the company. Wells Fargo (NYSE:WFC) has increased its price target for Microsoft to $600, citing strong growth in its Azure cloud services and the expanding adoption of Microsoft 365 Copilot. This is expected to drive a 13% year-over-year growth in Microsoft’s fiscal year 2026 earnings per share. BMO Capital has also raised its price target for Microsoft to $550, noting positive feedback from cloud experts about Azure’s performance in the June quarter. Piper Sandler has set an even higher price target of $600, highlighting Microsoft’s growing market share in Infrastructure as a Service (IaaS) and increased enterprise commitment to Azure.
In other developments, Bytes Technology (LON:BYIT) Group has received an upgrade from Jefferies, moving from Hold to Buy. Despite a weak statement at its Annual General Meeting, Jefferies believes the company’s growth slowdown is temporary, bolstered by the strong performance of Microsoft, which significantly contributes to Bytes Technology’s gross profit. Meanwhile, Cognition has announced its acquisition of AI coding startup Windsurf after a failed acquisition attempt by OpenAI. This acquisition includes Windsurf’s intellectual property and aims to integrate Windsurf’s development environment with Cognition’s existing technology. Additionally, several key Windsurf executives have joined Google (NASDAQ:GOOGL), furthering Google’s agentic coding initiatives.
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