Why Microsoft (MSFT) Stock Is Getting Fresh Price Target Upgrades This Week

TLDR

• Oppenheimer raised its Microsoft price target from $515 to $570, maintaining an Outperform rating
• Analyst Brian Schwartz sees Azure and M365 Commercial sustaining growth into FY27
• Copilot monetization and expanding compute capacity are key growth drivers
• Cantor Fitzgerald also raised its target, to $608 from $522, keeping an Overweight rating
• Wall Street consensus is Strong Buy, with an average price target of $571.51, implying 14% upside

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Microsoft (MSFT) stock climbed in Tuesday’s pre-market trading after Oppenheimer raised its price target to $570 from $515. The stock was trading at $501.61, up 4% year-to-date. The new target implies roughly 14% upside from that level.

Microsoft Corporation, MSFT

Oppenheimer analyst Brian Schwartz maintained an Outperform rating on the stock. The upgrade came after a recent visit to Microsoft’s headquarters.

Schwartz said his “acceleration with capital discipline” thesis for Microsoft remains intact. He sees the company growing without letting spending spiral out of control.

He expects Azure and Microsoft 365 Commercial to keep their growth momentum going into fiscal year 2027. He pointed to stronger Copilot monetization as a key part of that story, along with more compute capacity coming online.

Schwartz also said customers are increasingly choosing Microsoft as their primary enterprise AI platform. That kind of platform consolidation tends to make revenue more sticky and predictable.

On the financial side, Microsoft posted a gross profit margin of 67.94% and revenue growth of 17.79%. InvestingPro flagged the stock as undervalued based on its analysis.

Schwartz highlighted capital discipline as a competitive edge. He said Microsoft’s capex is becoming more predictable, and the company is generating positive free cash flow, unlike some of its hyperscaler rivals.

Cantor Fitzgerald Adds to the Bullish Case

Cantor Fitzgerald analyst Thomas Blakey also raised his price target, lifting it to $608 from $522 while keeping an Overweight rating. That is the highest target among the firms covered in this report.

Blakey said the recent growth acceleration looks sustainable. He noted that Microsoft’s capex guidance remains unchanged despite the strong growth outlook.

He also flagged that around $25 billion of Microsoft’s $175 billion 2026 capex plan is tied to component shortages. That is worth watching as supply chains evolve.

Risks Schwartz Is Watching

Schwartz did not ignore the downside. He warned that some enterprise IT spending may have been pulled forward into the second half of 2026, which could soften Azure and M365 growth heading into 2027.

He also said cloud margins could come under pressure if capital spending becomes less efficient. That is a risk the market will be watching closely as Microsoft reports results in the coming quarters.

Seventeen analysts have revised their earnings estimates upward for the upcoming period, according to InvestingPro. That is a broad show of confidence across the analyst community.

Wall Street currently has a Strong Buy consensus on MSFT, based on 24 Buy ratings and one Hold over the past three months. The average price target across analysts sits at $571.51, pointing to 14% upside from current levels.

JMP Securities recently upgraded Microsoft, citing its AI development approach. Citizens reiterated a Market Outperform rating with a $550 price target.

Microsoft also published a code of conduct for its future AI models, gathering external feedback before updates. The guidelines are designed to ensure AI serves users rather than replacing them.