Microsoft stock has struggled this year and Citi Research lowered its price target on the Magnificent Seven stock on Wednesday. The firm, however, remains "positive" with the company well-positioned in the artificial-intelligence moment.
Citi Research analyst Tyler Radke on Wednesday lowered his price target on Microsoft to $570 from $620 but maintained a Buy rating on the shares. That represents 48% upside from Microsoft stock's price of $384.93 at Tuesday's closing bell.
Shares moved 0.4% higher to $386.36 in premarket trading on Wednesday. Microwsoft has struggled in 2026, falling 20% and down 24% over the past 12 months.
But Radke is optimistic.
"We remain positive on MSFT," Radke wrote Wednesday, adding that that the company is "increasingly strategically positioned in an era of optimizing token spend and AI efficiency."
The firm expects a strong fourth-quarter earnings report but said investors should brace themselves for intensifying AI spending in fiscal 2027.
"We think MSFT will be able to demonstrate stronger returns with accelerating growth rates in flagship franchises (Azure + M365 CoPilot) as we move into FY27, which would ultimately drive accelerating overall revenue/EPS growth through FY30," Radke wrote.
Write to Kit Norton at kit.norton@barrons.com
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(END) Dow Jones Newswires
July 15, 2026 07:43 ET (11:43 GMT)
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