Microsoft Price Targets Increase, But One Analyst Warns of Valuation Risks

Microsoft has received two price target increases from analysts. However, one of them comes with some caveats. Deutsche Bank raised its price target to $365 per share, representing a potential gain of about 18% over current levels. On the other hand, Jefferies reduced its own price target to $340 per share, citing macroeconomic concerns.

The higher price target from Deutsche Bank may not be entirely positive news for Microsoft investors. As analyst Brad Zelnick noted, 'While we still like MSFT's growth profile, our valuation metrics are getting somewhat stretched.' This suggests that the stock may be overvalued at current levels.