
Morgan Stanley raises Microsoft's target price to $482, outstanding performance in the last fiscal quarter
Morgan Stanley's research report indicates that all revenue segments of Microsoft (MSFT.US) performed well in the third fiscal quarter, with profit margins also on the rise. The outlook for the fourth fiscal quarter shows stable demand and revenue exceeding market expectations, which should help Microsoft's stock price overcome market concerns.
The firm believes that based on Microsoft's fiscal year 2026 price-to-earnings ratio of 25 times under U.S. Generally Accepted Accounting Principles, it remains optimistic about Microsoft's development in the generative AI field and recommends a strong buy, raising its target price from $472 to $482, with a rating of "Overweight."
