Stock market today: Nasdaq closes above 23,000 for first time as tech rebounds
Investing.com - Truist Securities has reiterated its Buy rating on Microsoft (NASDAQ:MSFT), currently trading at $510.77 with a market cap of $3.79 trillion, with a price target of $675.00 following the company’s updated partnership agreement with OpenAI. The target aligns with the broader Wall Street sentiment, as InvestingPro data shows a strong Buy consensus with an average analyst rating of 1.26.
The research firm noted that Microsoft and OpenAI have entered into an agreement to redefine their partnership, potentially addressing investor concerns about the nature of their existing relationship.
Truist Securities indicated that while the joint statement between the two companies was brief, the updated memorandum of understanding could bring some near-term stability to the market’s perception of the collaboration.
The firm expects more details to emerge as the terms of the agreement are finalized in the coming weeks.
Analysts will be closely monitoring how future revenue opportunities for Microsoft might evolve or change as a result of this redefined partnership with OpenAI.
In other recent news, Microsoft has been the focus of several significant developments. China Merchants Securities has initiated coverage on Microsoft with a Buy rating and set a price target of $585. The firm emphasized Microsoft’s strong position in cloud infrastructure and AI capabilities as key factors for growth in the SaaS market. Meanwhile, Evercore ISI reiterated an Outperform rating on Microsoft with a price target of $625, despite a recent 7% decline in the stock price following strong fiscal fourth-quarter results. Truist Securities also maintained its Buy rating with a price target of $675, following discussions with a Microsoft executive about cloud and AI platforms. Additionally, Microsoft announced a new policy requiring employees to work from the office at least three days a week starting next year, with the first phase affecting staff near its Redmond, Washington headquarters. These developments come as the European Union’s antitrust probe into Microsoft’s Teams ended, with the EU accepting the company’s commitments.
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