Citizens JMP Reiterates Market Outperform on Microsoft, $550 Price Target

Citizens JMP analyst Patrick Walravens reiterated a Market Outperform rating and $550 price target on Microsoft (NASDAQ: MSFT).

“Microsoft announced in a July 6 blog post, The Latest in Our Company Transformation, that it is eliminating ~4,800 roles, or ~2.1% of its workforce.

According to Amy Coleman, EVP and Chief People Officer, “The roles eliminated today are not being replaced by AI,” but the announcement follows Microsoft’s broader push to reorganize around AI transformation.

Separately, on July 2, Microsoft announced Microsoft Frontier Company, a new operating business focused on helping enterprises achieve large-scale AI transformation by combining industry expertise, change management, and AI engineering.

Microsoft said it is investing $2.5B and deploying 6,000 industry and engineering experts, including Forward Deployed Engineers, to work directly with customers to design, deploy, and improve AI systems.

We published a note on Microsoft earlier this week, “” which discusses how Microsoft’s AI strategy fits into our broader view that enterprises increasingly want control over their data, models, agents, tools, and governance.”

This research note is reproduced verbatim from the issuing firm. Price Target never edits, paraphrases or alters analysts’ words — we only republish them in one place.