Leading investment bank UBS has cut its price target for Microsoft stock by $90, lowering it to $510 from $600, due to a re-analysis of the global economy influenced by the Middle East conflict. Despite this significant reduction, UBS maintains a ‘buy’ rating on the stock, indicating continued confidence in its long-term prospects while setting more conservative near-term expectations for its performance.
Investment bank UBS has significantly lowered its price target for Microsoft stock. The new target is $510, down $90 from a previous estimate of $600, as stated in its analysis.
The bank cited a re-analysis of the global economy prompted by the Middle East conflict. However, it maintained a ‘buy’ rating on Microsoft shares, suggesting the stock remains attractive at its current valuation.
UBS analyst Karl Keirstead, according to his profile, wants to see clearer financial results from Microsoft 365 and Copilot. The firm seeks better returns from AI adoption and Copilot subscriptions before considering a higher target.
The company recently faced controversy over its Copilot product. It has been accused of allegedly tricking millions of users into forced subscriptions for the service.
Microsoft stock opened at $371 on Thursday, having declined for three consecutive days. The equity is among the worst performers in the so-called Magnificent 7, down nearly 22% year-to-date.
The new $510 target still implies a potential 37% upside from the current trading price. The previous $600 target had suggested a possible gain of approximately 62%.
