Brokerages cut Microsoft PT, expect higher capital spending
MSFT•Brokerages trim price targets on Microsoft ahead of Q4 results
Brokerages Citi and Mizuho cut price targets on Microsoft MSFT.O, saying they expect higher capital expenditure by the Windows maker.
- Citi cuts its price target to $570 from $620.
- Mizuho cuts its price target to $490 from $515.
- Wells Fargo cuts its Microsoft price target to $625 from $650, citing a mixed Q4 setup given questions on capital intensity and cloud market share.
Shares of Microsoft were up 0.4% at $386.51 in premarket trading.
Brokerages also cited strong Azure demand and improving Copilot adoption.
According to data compiled by LSEG, 58 of 62 brokerages rate the stock "buy" or higher, and 4 rate it "hold"; their median price target is $555.
Microsoft is scheduled to report Q4 results on July 29.
Up to the last close, the stock has fallen about 20% year to date.
