By Proactive
Publication Date: 2026-03-25 17:12:00
UBS analysts maintained a ‘Buy’ rating on Microsoft Corp (NASDAQ:MSFT), while lowering their 12-month price target to $510 from $600, citing investor scrutiny on Microsoft’s M365 and Copilot offerings and broader AI competition.
The firm noted the stock trades at 19 times projected 2026 non-GAAP earnings, trading hands at $370 on Wednesday afternoon.
“At 19x calendar year 2026 non-GAAP EPS we remain ‘Buy’-rated, but acknowledge that the narrative around M365/Copilot needs to improve in order for the stock to really re-rate higher,” UBS analysts wrote.
Investor meetings across Asia and Australia highlighted questions about the growth and durability of Microsoft’s core M365/Copilot business, they noted.
Microsoft pointed to increased Copilot usage in the second quarter and recent initiatives including a new E7 bundle, Copilot Cowork, and…