UBS Reiterates ‘Buy’ Rating and $650 PT on Microsoft

UBS analyst Karl Kierstead reiterated on August 20, 2025, a ‘Buy’ rating and $650 price target on Microsoft.

“Last week, Microsoft announced a new pricing and licensing model that partners described as “significant” and “very aggressive”, prompting us to explore the change in detail.

We spoke with two large Microsoft partners to walk through the change.

Bottom line, Microsoft is standardizing pricing across most of its customer tiers on EA contract types, with partners consistent in their feedback that this results in a net price increase.

We remain Buy-rated.”

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