Microsoft Gets a $600 Price Target. It’s Not too Late to Buy the Stock, Analyst Says.
Microsoft stock has even more upside potential as the tech company benefits from artificial intelligence innovations, says one Truist analyst.
Joel Fishbein initiated coverage of Microsoft on Wednesday with a Buy rating and a three-year $600 price target. That implies a 60% increase from the stock’s closing price of $374.38 on Tuesday.
Fishbein’s bullish view is led by his optimism about the company’s future AI innovations.
“Their early investments in artificial intelligence have positioned them to take a leadership position in what we view as the fastest growing multi-billion-dollar market in technology,” he said in a note.
Microsoft made a $1 billion investment in OpenAI in 2019, the parent company of popular generative AI software program, ChatGPT. Microsoft continues to be a top investor in OpenAI, and is planning on utilizing AI capabilities in its collection of programs through Microsoft Copilot.
“Though their early execution in the generative AI market has been impressive, we believe that MSFT is poised to deliver further upside to expectations as projects go into production,” he said. Fishbein added that Microsoft will continue to experience AI tailwinds to its business for the next decade.
Macquarie analyst Frederick Havemeyer, who rates the stock as Outperform with a $430 price target, has a similar view.
“Copilot uptake will not be immediate, but can generate share price upside as profitable monetization expands over the next few years,” Havemeyer said in a research note Wednesday.
Shares of Microsoft were rising 0.9% to $377.59 in premarket trading. Coming into the session, the stock has gained 56% this year.
Write to Angela Palumbo at [email protected]