Morgan Stanley Raises Microsoft’s PT to $625
Morgan Stanley analyst Keith Weiss raised on September 26, 2025, Microsoft’s price target to $625 (from $582). The ‘Overweight’ rating remained unchanged.
“The strong positioning of Microsoft for multiple secular growth drivers – GenAI (polls #1 as the biggest wallet share gainer), migration of Enterprise workloads to the Public Cloud (polls #1 as the biggest wallet share gainer), Cyber-security (the largest vendor in the space with >$40 billion in revenues) and across all these an ongoing push towards consolidation of spend with fewer vendors – enables an under-appreciated durability of high-teens total return profile, currently under-priced at a <26x GAAP CY27 EPS multiple compared to the >$50Bn large-cap software average at 32x non-GAAP EPS.
Sustained momentum on the top-line, better appreciation of the breadth of growth drivers and resolution of uncertainty around the OpenAI relationship should drive shares toward our upwardly revised $625 price target.
Reiterate Overweight, making Microsoft our Top Pick in large-cap software given the clearest and highest probability positive risk/reward in the space.”
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