Microsoft (NASDAQ: MSFT) has been making headlines as analysts refine their price targets for the tech giant.
With a pre-market price of $423—up modestly—Microsoft’s shares have seen a solid gain of 3.06% over the past five days. Despite its recent gains, Microsoft is trading in the middle of its 52-week range, lagging behind the S&P 500, which is flirting with new highs.
Currently trading at $42.86, MSFT stock finds itself in the middle of a broad monthly range between $405.57 and $438.50. As prices consolidate, some see this as a strategic entry point, although investors should be mindful of potential resistance overhead.
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The stock faces support between $410.43 and $421.09, with a resistance zone from $429.37 to $429.54 and a key resistance level at $438.69. The question on investors’ minds: Can Microsoft break through these levels and regain momentum?
Wall Street weighs in on MSFT shares
On November 4, RBC Capital reiterated its “Outperform” rating on Microsoft, with an ambitious $500 price target. After engaging with Microsoft executives at their headquarters, RBC analyst Kash Ranga noted, “Feedback was generally positive, but investor sentiment remains cautious, with a keen focus on Azure’s potential reacceleration in the second half.”
Ranga highlighted that many investors were underwhelmed by Microsoft’s Q1 results, especially the guidance for Q2, leading to a “wait-and-see” sentiment. “We believe a considerable number of investors are either sidelined or underweight on Microsoft until Q2 results provide more clarity on the recovery trajectory.”
Ranga added, dampening hopes that Microsoft Ignite, the upcoming tech conference from November 18-22, would serve as a catalyst.
Elsewhere, Daiwa Securities raised Microsoft’s price target from $500 to $520, maintaining its “Buy” rating as the firm expresses confidence in Microsoft’s ability to navigate the current tech landscape.
However, President Capital made a slight adjustment, lowering its target to $485 from $490, yet keeping a positive “Buy” stance. Citic Securities echoed similar confidence, increasing its target from $465 to $476, reinforcing its belief in Microsoft’s long-term value.
Finally, UBS analyst Karl Keirstead remains bullish, reiterating a “Buy” rating with an unchanged target of $500. UBS appears to be taking a long-term view, focusing on Microsoft’s fundamentals and future potential rather than immediate catalysts.
With analysts broadly optimistic but the stock facing near-term resistance, Microsoft’s trajectory could hinge on upcoming earnings and whether Azure’s growth can meet elevated expectations.
