Oppenheimer Raises Microsoft Price Target to $625

Oppenheimer analyst Brian Schwartz raised the price target on Microsoft (NASDAQ: MSFT) to $625 (from $570) while maintaining an Outperform rating.

“Reiterating Outperform on Microsoft and raising PT to $625 from $570 ahead of F1Q results.

Our checks indicate healthy enterprise demand supporting sustained Azure/M356 momentum, and a favorable earnings setup.

With infrastructure availability not demand as the primary constraint on Azure growth, we see a clear path for sustaining Azure/M365 acceleration as additional capacity comes online this and next fiscal year.

Meanwhile, a multimodel AI strategy, higher utilization, and prudent Opex can help preserve operating margin even as investment to capture AI demand continues pressuring gross margins.

FY27 Capex requirements is a key risk to monitor.

Overall, our checks reinforce our thesis that Microsoft remains one of the highest quality AI beneficiaries in large-cap software, with potential for accelerating growth and upward estimate revisions as Azure capacity constraints ease and AI monetization scales.”

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