Mizuho Reiterates Microsoft’s ‘Outperform’ Rating
Mizuho analyst Gregg Moskowitz reiterated on October 28, 2025, an ‘Outperform’ rating and $640 price target on Microsoft.
“This morning, MSFT and OpenAI announced an important agreement reflecting updates to the partnership.
We previously contended that, despite growing investor concern, this relationship continues to be both healthy overall and a significant positive for MSFT.
In our view, today’s announcement clearly supports that.
In the end, while neither party got all that it wanted, we believe this agreement is a winwin.
For MSFT, it critically retains its revenue share for the foreseeable future, along with exclusive IP rights and Azure API exclusivity until Artificial General Intelligence (AGI) is attained, while obtaining a ~27% equity stake and ceding its right of first refusal.
More broadly, we remain confident MSFT’s revenue growth opportunities over the medium-term and beyond are greater than many realize, and we remain very bullish on its tangible AI adoption and monetization levers.
We reiterate our Outperform rating and maintain our PT of $640.”
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