Wells Fargo reiterated its Overweight rating on Microsoft NASDAQ:MSFT, while lowering its price target to $625 from $650.
Wells Fargo said the revised target reflects a more measured outlook but continues to indicate confidence in Microsoft's long-term growth prospects. The brokerage expects Azure cloud computing demand and the company's expanding artificial intelligence offerings to remain key drivers of future performance.
The analyst maintained that Microsoft is well positioned within enterprise software despite a more cautious market backdrop. The firm said the company's broad product portfolio and AI investments continue to support its long-term strategy, even as investors assess the pace of growth and spending.
Separately, Microsoft appeared undervalued based on its proprietary valuation model provided by GuruFocus, estimating a fair value of $563.10 compared with the stock's recent trading price. The research firm also assigned Microsoft a GF Score of 96 out of 100, citing strong profitability, growth, and financial strength, while noting insider sales of about $10.5 million over the past three months.