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Citigroup Maintains Buy Rating for Microsoft, Raises PT to $613.
ByAinvest
Tuesday, Jul 22, 2025 9:19 am ET1min read
Citigroup Maintains Buy Rating for Microsoft, Raises PT to $613.
Citigroup has raised its price target for Microsoft (NASDAQ: MSFT) to $613.00 from $605.00, while maintaining a Buy rating. The upgrade reflects expectations of strong quarterly results and positive revisions, particularly in the Azure cloud services segment [2].The upgrade comes as Microsoft's stock is trading near its 52-week high, currently at $510.06. Year-to-date, the stock has delivered a 21.48% return. Citi's analysts anticipate another strong quarter for Microsoft, citing robust Azure growth and positive reseller survey results [2].
Microsoft's Azure cloud services have been a key driver of the company's growth. Citi's fiscal year 2026 estimate for Azure growth is approximately three percentage points above the broader market consensus. The new price target is based on 30 times fiscal year 2028 earnings per share, discounted back [2].
Citi's positive outlook on Microsoft is driven by several factors, including its AI exposure, business model quality, and long-term pricing and margin power. The firm views these as nearly unmatched in enterprise software [2].
In related news, other analysts have also expressed confidence in Microsoft's prospects. RBC Capital reiterated its Outperform rating, citing healthy cloud conditions and phased rollouts of its Copilot feature. BofA Securities raised its price target to $585, reflecting confidence in Azure cloud services [2].
Microsoft has also been involved in strategic developments, such as a partnership with OpenAI and a collaboration with Tevogen Bio on AI-powered peptide prediction technology [2]. However, it faces regulatory scrutiny, with U.S. lawmakers raising concerns about the security of submarine communications cables potentially serviced by Chinese and Russian entities [2].
References:
[1] https://www.streetinsider.com/Analyst+Comments/Microsoft+%28MSFT%29+PT+Raised+to+%24613+at+Citi/25077784.html
[2] https://www.investing.com/news/analyst-ratings/citi-raises-microsoft-stock-price-target-to-613-on-strong-azure-growth-93CH-4145618
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