Citi Raises MSFT Target Price Amid Azure Growth
Microsoft's (MSFT) stock price has seen a significant boost due to its rapid growth in Azure cloud services and Copilot paid users. According to a recent report by Citi, Microsoft is expected to invest approximately $190 billion in capital expenditures for fiscal year 2026, which will solidify its position in the rapidly evolving cloud services market.
The firm has raised its target price for Microsoft from $535 to $700, rating it as 'outperform.' GuruFocus's GF Value calculates that Microsoft is currently 12.1% undervalued with a value of $575.48 compared to its current price of $506.06.
Microsoft's financial strength is rated 8/10, reflecting its robust balance sheet and strong profitability and growth potential. The company's GF Score of 97/100 indicates overall strong performance and fundamentals. However, the lower momentum rank suggests that investors should be cautious and monitor market trends closely.