Jefferies Reiterates Buy Rating on Microsoft (MSFT)

Jefferies analyst Brent Thill reiterated a Buy rating and $675.00 price target on Microsoft (NASDAQ: MSFT)

The analyst comments: "MSFT is down 18% since F1Q, despite disclosing $250B OAI & $30B Anthropic commitments, seeing its multiple compress 23% as investors continue to rotate into Semis (SMH +9%). But MSFT is positioned to drive upside through execution against its massive backlog as it ramps capacity significantly this yr. Valuation is attractive at 23x CY27 EPS, below hyperscalers AMZN 24x & GOOGL 25x despite superior visibility, RPO and clear AI monetization vectors. Buy; $675 PT.

Following RPO accelerating 14pts in F1Q to 51%/$392B, F2Q RPO should show the largest sequential step-up ever, driven by inclusion of the $250B OAI commitment & Anthropic’s $30B Azure compute agreements, reinforcing unprecedented multi‑year demand visibility underpinning a strong durable growth outlook for Azure & M365 Comm."

For an analyst ratings summary and ratings history on Microsoft click here. For more ratings news on Microsoft click here.

Shares of Microsoft closed at $444.06 yesterday.

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