Cantor Fitzgerald Raises Microsoft Price Target to $630

Cantor Fitzgerald analyst Thomas Blakey raised the price target on Microsoft (NASDAQ: MSFT) to $630 (from $608) while maintaining an Overweight rating.

“Importantly, management reiterated that despite this 2HF27 accel in capex, Microsoft expects to remain FCF-positive in FY27.

We view the quarter as further validation of Microsoft’s AI-led growth opportunity, while continuing to monitor capacity delivery timing, cloud margin pressure from Azure mix and component cost inflation, and the ability to sustain infrastructure returns as investment accelerates.

Accordingly, we raise our estimates and PT to $630 from $608, implying an CY27E target P/E multiple of ~29x (vs. 28x, previosuly).

We reiterate our OW rating on MSFT shares as we continue to expect Microsoft to be a leading beneficiary of intelligence diffusion across the enterprise.”

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