By Proactive
Publication Date: 2026-10-15 17:25:00
UBS has raised its price target for Microsoft Corp (NASDAQ:MSFT), the software and cloud computing company, to $675 from $525, arguing that strong demand for artificial intelligence services supports higher growth expectations ahead of its 28 October results.
The bank reiterated its ‘buy’ rating, saying Microsoft’s valuation remains reasonable at 23 times estimated 2027 adjusted earnings despite a 39% rally since its June-quarter results.
UBS expects investors to focus on Azure, Microsoft’s cloud computing business, where the market now anticipates revenue growth of 47% for the September quarter, representing a potential two-percentage-point beat against previous expectations.
The bank believes this target is achievable, citing solid enterprise demand, increased artificial intelligence infrastructure spending and potential benefits from higher OpenAI revenues flowing through to Azure.
Microsoft could also benefit from rising prices…