U.S. stocks lower as investors rotate out of tech ahead of Jackson Hole
Investing.com - Truist Securities raised its price target on Microsoft (NASDAQ:MSFT) stock to $675.00 from $650.00 on Monday, while maintaining a Buy rating. The tech giant, currently trading near its 52-week high with a market capitalization of $3.85 trillion, has seen 22 analysts revise their earnings estimates upward for the upcoming period, according to InvestingPro data.
The price target increase reflects Truist’s confidence that Microsoft can sustain strong momentum from cloud and AI secular growth drivers, while benefiting from a growth-enhancing effect across its infrastructure, data and application businesses.
Truist has raised its fiscal year 2026 and 2027 estimates for revenue, operating profit and cash flow, citing opportunities for upside to both its own and consensus street estimates.
The firm expects Microsoft to deliver at least low-teens double-digit growth in revenue, profit and cash flow over an extended period, while consistently returning cash via dividends and share repurchases.
Truist’s new price target is supported by a 10-year discounted cash flow analysis that assumes low double-digit revenue compound annual growth rate and mid-30s free cash flow margin.
In other recent news, OpenAI employees are set to sell approximately $6 billion worth of shares to an investor group, valuing the company at $500 billion. This group includes Thrive Capital, SoftBank (TYO:9984) Group Corp., and Dragoneer Investment Group. OpenAI is also updating its GPT-5 model to be more approachable after receiving user feedback. The changes will include subtle adjustments to make interactions feel warmer and friendlier. Meanwhile, GitHub CEO Thomas Dohmke announced his departure from the Microsoft-owned platform to start a new venture, with Microsoft opting not to directly replace his role. In related developments, DA Davidson has reiterated a Buy rating on Microsoft stock, emphasizing the importance of its commercial relationship with OpenAI. This follows OpenAI’s release of GPT-OSS, its first open-source model since 2019.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.