Four-star rated Citi analyst, Tyler Radke, with an average return of 4.1% per rating, reiterated a Buy rating on tech giant, Microsoft (NASDAQ:MSFT). However, he lowered the price target to $475 from $480. The analyst’s price target implies an upside potential of 15.5% from current levels. The analyst’s bullishness stems from his optimism regarding the company’s AI-related revenues, which will likely be a pleasant surprise. Microsoft is expected to report its calendar first-quarter earnings on April 25.
Radke is also upbeat about MSFT’s cloud computing business, Azure, whose growth has been boosted by its AI services. The analyst highlighted a positive market environment for the company’s personal computing market. These positive factors may boost Microsoft’s key metrics and could potentially lift its earnings per share.
However, the analyst lowered the price target on the stock due to foreign exchange currency headwinds.
Is Microsoft Stock a Buy or Sell?
Analysts are bullish about MSFT stock, with a Strong Buy consensus rating based on 33 Buys and one Hold and Sell each. Over the past year, MSFT has increased by more than 40%, and the average MSFT price target of $477.36 implies an upside potential of 16.2% from current levels.
