- UBS raised its Microsoft price target to $675 from $525 and reiterated a buy rating, citing AI demand and Azure growth.
- Bernstein raised its Microsoft price target to $662 from $660 and kept an Outperform rating ahead of fiscal Q1 2027 earnings.
- Analysts expect $4.72 EPS on $90.4 billion revenue for fiscal Q1 2027, and 53 of 56 analysts rate the stock Buy or Strong Buy.
- UBS raised its valuation multiple for Microsoft to 25 times estimated 2028 adjusted earnings from 19 times.
- The market anticipates 47% Azure revenue growth for the September quarter.
- Microsoft reportedly canceled its agreement to rent 23,000 Nvidia AI chips at Nscale's planned Loughton, Essex data center, where it was the anchor tenant.
- Nscale's UK facility faces power supply not expected until the 2030s, which affects its financing.
Quotes
“fundamental buffer for the stock despite the recent 39% rally”