Microsoft Corporation (MSFT) is engaged in developing and marketing software, services, and hardware that deliver new opportunities, greater convenience, and enhanced value to people’s lives.
On April 10, BNP Paribas analyst Stefan Slowinski lowered the firm’s price target on Microsoft Corporation from $659 to $556, but maintained an ‘Outperform’ rating on the shares. The trimmed target, which still indicates an upside potential of almost 50% from the current share price, comes ahead of the company’s upcoming Q3 2025 report due on April 29.
BNP Paribas revised its estimates to reflect the additional 40% capacity being allocated towards first-part workloads, as well as the higher cash capital expenditures. The reduced valuation multiple also accounts for a broader de-rating in the software industry.
Microsoft Corporation is targeting a revenue of $80.65 billion to $81.75 billion in Q3, indicating a growth of 15% to 17% amid the accelerating AI cloud demand and Copilot seat growth. It needs mentioning that the company also grew its revenue by 17% YoY to $81.3 billion in the second quarter.
While we acknowledge the risk and potential of MSFT as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame.
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