Microsoft price target raised to $520 from $495 at Citi

Citi raised the firm’s price target on Microsoft to $520 from $495 and keeps a Buy rating on the shares. While OpenAI’s revenue growth headlines are a positive for Microsoft from a growth perspective, suggesting strength in Azure, consensus models may be understating the losses that Microsoft will incur from its OpenAI stake in the non-operating expense line, the analyst tells investors in a research note. Citi believes consensus earnings per share estimates may be overstated by 4c-5c in the coming quarters all-else-equal. However, the firm increased fiscal 2027 estimates, which drives the price target bump.