Microsoft (MSFT – Research Report), the Technology sector company, was revisited by a Wall Street analyst today. Analyst Keith Weiss from Morgan Stanley maintained a Buy rating on the stock and has a $472.00 price target.
Keith Weiss has given his Buy rating due to a combination of factors that highlight Microsoft’s long-term potential despite current challenges. The company’s valuation appears attractive at 25 times the GAAP CY26 EPS, which suggests a positive risk-reward balance for investors looking at the long-term prospects, particularly in the realm of generative AI where Microsoft is seen as a leader.
While there are near-term concerns about macroeconomic uncertainties and slowing growth in key segments like Azure and Microsoft 365, these issues are already reflected in the current share price. Weiss believes that the negative sentiment and estimate revisions have been priced in, making the stock an appealing buy for those willing to look beyond the immediate hurdles and focus on Microsoft’s strategic positioning and potential for future growth.
In another report released yesterday, Bank of America Securities also reiterated a Buy rating on the stock with a $480.00 price target.