Citigroup: Cuts Microsoft’s price target to $570, maintains a “Buy” rating

Golden Finance reported that on July 15, Citigroup issued a research report saying that due to valuation multiple compression in the software industry, it lowered Microsoft’s target price from $620 to $570, based on a 25x forecast P/E for fiscal year 2028 (previously 28x), while maintaining a “Buy” rating. The firm expects the company’s performance in the fourth fiscal quarter to be strong; entering fiscal year 2027, Microsoft will be able to deliver stronger returns driven by faster growth from its core business (Azure and M365 Copilot), which will ultimately keep driving ongoing acceleration in total revenue and earnings per share growth.
MSFT-0.34%
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