Citi Raises Microsoft (MSFT) Price Target, Maintains Buy Rating

Microsoft Corporation (NASDAQ:MSFT) is one of the 12 Most Owned Stocks by Hedge Funds So Far in 2025. On July 22, Citi increased its price target on Microsoft Corporation (NASDAQ:MSFT) from $605 to $613 while keeping a Buy rating.

The research firm expects “another strong quarter of positive revisions and upside to Q4+Q1 Azure numbers” for Microsoft Corporation’s (NASDAQ:MSFT) fiscal year 2025 fourth-quarter results. Citi’s reseller survey indicated some of the best growth and quota attainment performances in more than four years.

According to the research note, partner checks also found strength in Microsoft Corporation’s (NASDAQ:MSFT) CoPilot and Dynamics offerings. Citi had already increased its forecast for Azure in mid-June, but has now increased its estimates again.

Citi expects Microsoft Corporation’s (NASDAQ:MSFT) Azure growth in fiscal year 2026 to be about three percentage points higher than the consensus estimates.

Microsoft Corporation (NASDAQ:MSFT) is one of the firm’s top picks in its sector thanks to its AI exposure, strong business model, and long-term pricing and margin power that Citi sees as “nearly unmatched in enterprise software.”

Microsoft Corporation (NASDAQ:MSFT) is an American technology company that develops and markets software, services, and hardware. It also specializes in AI-powered cloud, productivity, and business solutions.

While we acknowledge the potential of MSFT as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.