Microsoft stock price target raised to $550 from $500 at Stifel

Investing.com - Stifel raised its price target on Microsoft (NASDAQ:MSFT) to $550 from $500 while maintaining a Buy rating on the stock. Currently trading at $513.71, Microsoft’s stock sits near its 52-week high of $518.29, with a market capitalization of $3.82 trillion. According to InvestingPro analysis, the stock appears to be trading above its Fair Value.The investment firm cited expectations for accelerated enterprise spending, improved non-AI go-to-market execution, and strong generative AI demand that could push Azure cloud growth beyond the company’s guidance of 34-35% year-over-year at constant currency.Stifel believes Microsoft’s previous supply and demand imbalance concerns will extend beyond June into the second half of fiscal 2026, with capital expenditure potentially increasing by approximately 50% year-over-year.The firm expects Azure growth to maintain a mid-30% range in upcoming quarters, potentially exceeding both Stifel’s and Wall Street’s estimates of approximately $110 billion and $100 billion, respectively.Stifel also highlighted Microsoft’s robust operating expense management, noting that recent layoffs and efficiency initiatives should offset gross margin compression and enable continued double-digit operating income growth in fiscal year 2026 and beyond.In other recent news, Microsoft is set to release its quarterly earnings report on July 30, marking the end of its fiscal year. Cantor Fitzgerald has maintained an Overweight rating with a price target of $581, while KeyBanc reiterated its Sector Weight rating, noting positive signs from Microsoft’s reseller network. Evercore ISI has increased its price target for Microsoft to $545, citing adjustments in fiscal year 2026 estimates related to Azure cloud services and workforce changes. Meanwhile, Microsoft is investigating potential vulnerabilities in its cybersecurity alert system, which may have been exploited by Chinese hackers targeting its SharePoint service. Additionally, GitHub, a Microsoft subsidiary, launched GitHub Spark, a platform designed to streamline app development using AI and natural language commands. The new tool aims to simplify the process of creating and deploying applications by reducing setup time. These developments reflect ongoing changes and initiatives within Microsoft as it approaches the end of its fiscal year.This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.