Stifel cuts Microsoft to Hold, sees 2027 estimates as ‘too optimistic’

Stifel downgraded Microsoft (MSFT) to Hold from Buy with a price target of $392, down from $540. Given the well-documented Azure supply issues, coupled with Google’s (GOOGL) strong Google Cloud Platform and Gemini results this evening and growing Anthropic momentum, a near-term Azure acceleration is unlikely, the analyst tells investors in a research note. FY27 is also likely to have less in-period revenue recognition as FY26 befitted from several product cycles, the firm added. Stifel is modeling 2027 EPS view of $18.70, which is “meaningfully below” consensus, the analyst stated.