Deutsche Bank Microsoft · MSFT

Deutsche Bank Reiterates Buy on Microsoft, $550 Price Target

1 min read Reproduced verbatim
Rating
Buy
Unchanged
Target
$550
Outcome
Reached
on November 4, 2026
Deutsche Bank and Microsoft logos

What the analyst said

Deutsche Bank analyst Brad Zelnick reiterated a Buy rating and $550 price target on Microsoft (NASDAQ: MSFT).

“Microsoft is set to report F4Q earnings on Weds. July 29th, where despite bouncing off late June lows shares have been under pressure lagging the S&P 500 by ~28pts YTD.

Based on our conversations, the bear case seems to coalesce around three main factors: (1) rising component prices, namely memory pushing forecasts for CapEx higher and margins and FCF down; (2) persistent doubt about underlying returns on ballooning investments the company is making across its AI portfolio; and (3) concentrated backlog exposure to OpenAI.

While all valid concerns, we believe fears around each of these areas have become overblown and are more than fully reflected in shares now trading at 20x NTM EPS (or we est 18.5x subtracting their stake in OpenAI) vs. a ~29x 3yr & 5yr trailing average, presenting an attractive entry point for a company we believe is poised to continue compounding EPS at a mid-teens+ rate for at least the next several years.”

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Where the price stands

MSFT trades at $536. The 28 analysts who set a target in the last 3 months range from $515 to $750, with a median of $630. This $550 target is 13% below the median.

Since the note MSFT has moved +36% (from $394). 12-month window: day 108 of 365, closes on July 20, 2027.

Track record

This call✓ Target reached on November 4, 2026, 4 months after the note.

Firm track recordDeutsche Bank: 80% of its 25 targets at least a year old were reached within 12 months (#11 of 26 firms). Accuracy ranking →

Deutsche Bank on Microsoft

Deutsche Bank price targets on Microsoft

3 calls from July 20, 2026 to October 29, 2026. The target went from $550 to $600 (+9%). The rating stayed Buy.

Deutsche Bank targetMSFT share price
  1. October 29, 2026Upgraded to Buy, kept the $600 targetBuy$600
  2. October 12, 2026Downgraded to Hold, target raised from $550 (+9%)Hold$600
  3. July 20, 2026 This noteEarliest call shownBuy$550
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Other analysts on Microsoft

BairdBuy Raised price target +20%, kept rating Oct 30 $600from $500 ArgusBuy Kept rating Oct 30 UBSBuy Raised price target +4%, kept rating Oct 29 $700from $675 TD CowenBuy Raised price target +4%, kept rating Oct 29 $650from $625 CantorBuy Raised price target +4%, kept rating Oct 29 $630from $608
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Price Target is an archive of Wall Street analyst research, published for informational purposes only. Nothing on this site is investment advice, a recommendation, or an offer to buy or sell any security. Analyst ratings and price targets are the opinions of the issuing firms, not of Price Target. Always do your own research or consult a licensed financial adviser.