Analysts adjust target price for Microsoft stock
In the past 18 months, Microsoft (NASDAQ: MSFT) has experienced significant growth, thanks to its collaboration with OpenAI and the controversial acquisition of Activision Blizzard, a major player in the gaming industry known for popular titles like Call of Duty and World of Warcraft. This growth trajectory has propelled Microsoft to become the largest company in the world by market capitalization as of the beginning of 2024.
Despite this positive performance, the year has been marked by volatility and a general slowdown in growth. As of today, Microsoft’s stock price stands at $423.58, representing a 14.24% increase year-to-date (YTD).
Looking ahead to June 2024, Microsoft’s stock faces increased scrutiny from the Federal Trade Commission (FTC) over its investment in the artificial intelligence (AI) firm Inflection. However, recent ratings revisions suggest that Wall Street experts have high confidence in Microsoft’s continued growth potential, with Oppenheimer describing the partnership as promising and sustainable. The firm has reiterated an ‘outperform’ rating for Microsoft’s shares and raised its price target from $450 to $500.
Similarly, analysts at Wells Fargo have maintained a ‘buy’ rating for Microsoft and expect the technology giant to reach $500 per share in the next 12 months. These projections reflect a belief that Microsoft will weather any challenges from the FTC and continue its upward trajectory, which has seen the stock climb by 27.72% in the last 52 weeks and 220.01% in the last 5 years.
Analysts overwhelmingly expect Microsoft’s stock to continue rising, with 32 out of 33 experts on the TipRanks platform rating the stock as a ‘buy’. The average price target represents a 16.45% increase for Microsoft to reach $493.56. The highest price target, set by Truist Securities, envisions Microsoft reaching $600 in the next year, while the lowest price target of $450 is becoming less common as experts become more bullish on the stock.
Overall, the outlook for Microsoft’s stock remains positive, with analysts expressing confidence in the company’s growth prospects despite regulatory challenges.
