Microsoft Price Target Raised to $613 by Citi

Microsoft (MSFT, Financials) received a price target increase to $613 from $605 by Citi, which reiterated its Buy rating, citing strong demand for Azure cloud services and continued upside in near-term growth forecasts.

According to Citi's research note published Tuesday, the firm expects another quarter of positive revisions, with Azure numbers for the fourth and first fiscal quarters projected to exceed consensus. The new target is based on 30 times fiscal year 2028 earnings per share, discounted back.

The company's stock recently traded at $510.06, close to its 52-week high of $514.64, and has gained 21.48% year to date. Citi's internal surveys pointed to strong performance across Microsoft's Copilot and Dynamics platforms. The bank's estimate for fiscal year 2026 Azure growth is about three percentage points higher than market expectations.

Citi said Microsoft remains its top pick in enterprise software due to its artificial intelligence exposure, business model quality, and long-term pricing and margin strength. BofA Securities and RBC Capital also raised or reiterated their bullish outlooks in recent weeks, according to publicly available research notes.

Microsoft's fiscal fourth-quarter earnings report is expected in late July, which will serve as the next major catalyst for the stock.