Microsoft’s EA pricing changes seen as net increase, UBS reiterates Buy

Published 20/08/2025, 15:14
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Investing.com - UBS maintained its Buy rating and $650.00 price target on Microsoft stock (NASDAQ:MSFT) following the company’s recent pricing and licensing model changes. According to InvestingPro data, Microsoft currently trades at $506.72, with analyst targets ranging from $483 to $700. The stock maintains a strong "Buy" consensus with a 1.28 rating, while 23 analysts have recently revised their earnings estimates upward.

The changes, announced last week, have been described by partners as "significant and very aggressive," according to UBS analyst Karl Kierstead.

UBS conducted discussions with two large Microsoft partners to better understand the details of the pricing adjustments, which involve standardizing pricing across most customer tiers on Enterprise Agreement (EA) contract types.

The partners provided consistent feedback indicating that Microsoft’s pricing standardization will result in a net price increase for customers.

Despite the pricing changes, UBS remains confident in its Buy rating on Microsoft shares, maintaining its $650.00 price target for the stock.

In other recent news, Microsoft announced a multiyear strategic partnership extension with the National Football League to integrate its AI technologies across league operations. This collaboration will utilize Microsoft Copilot and Azure AI to enhance various aspects such as sideline evaluation and talent scouting. Truist Securities has also raised its price target for Microsoft stock to $675, up from $650, while maintaining a Buy rating. The firm cites strong momentum from Microsoft’s cloud and AI growth as key factors for this adjustment.

Meanwhile, OpenAI employees are set to sell approximately $6 billion worth of shares, valuing the company at $500 billion. The investor group involved in this deal includes Thrive Capital, SoftBank (TYO:9984) Group Corp., and Dragoneer Investment Group. OpenAI is also making updates to GPT-5, aiming to make the AI assistant more approachable based on user feedback. The changes will include subtle touches to create a friendlier interaction experience. Additionally, a leaked advertisement has confirmed that Call of Duty: Black Ops 7 will be released on November 14, showcasing new gameplay features.

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