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Research Alert: CFRA Maintains Strong Buy Opinion On Shares Of Microsoft Corporation
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Research Alert: CFRA Maintains Strong Buy Opinion On Shares Of Microsoft Corporation
Apr 1, 2026 5:18 AM

07:55 AM EDT, 04/01/2026 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We cut our target price to $450 from $550, on a lower revised P/E of about 22x our CY 27 EPS of $20.55, below its five-year historical forward average of 30.5x. After its worst quarter since late 2008, we view MSFT's stock as an enticing opportunity for investors (P/E near decade lows) despite being thrown into the fire amid concerns of the "SaaSpocalypse". On the negative side, we see risks of higher capex spending relative to consensus and OpenAI concentration (45% of RPO), while Copilot isn't growing as fast as competitive offerings and note industry fear of slowing seat growth/AI productivity gains. Still, we think many of these issues have been discounted, while we point to MSFT's sticky platform and enormous pricing power. In addition, we expect Azure growth to remain robust (high 30s). While investors may want MSFT to shift more capex to this area to accelerate growth, we think it's prudent to invest in products that can offer higher margins over time (OpenAI/Anthropic success is not a zero-sum game).

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