Truist Lowers Microsoft Price Target to $575
Truist Securities analyst Terry Tillman lowered the price target on Microsoft (NASDAQ: MSFT) to $575.00 (from $675.00) while maintaining a Buy rating.
“We view MSFT’s 3QFY26 as another solid execution qtr, w/ Azure CC growth of 39% & AI rev surpassing a $37B run rate, as mgmt notes demand remains supply constrained.
Copilot adoption continues to scale (20M+ paid seats), & we believe the shift toward seats + consumption should expand LT monetization, despite NT noise in bookings & RPO.
While investor focus remains on ~$190B of expected ’26 capex & margin pressure, we believe this reflects a pull-forward of investment to meet supply constrained AI demand w/ returns increasingly tied to scaling usage & monetization over time.
Reit. Buy but lower PT to $575 (from $675) on sustained multiple compression across software.”
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