Microsoft Stock Price Prediction 2025: Phillip Capital, through its research arm Phillip Securities, has downgraded its rating on Microsoft (NASDAQ: MSFT) stock to ‘Accumulate’ (earlier ‘Buy’) with a price target of $480.00, implying an upside of 10% from the current price. The median target for the stock is $505.76, according to LSEG data.
On Monday, Microsoft stock closed 0.20% higher at $436.17 apiece from the previous close of $435.28. In comparison, the S&P 500 was down 0.64% at 5,650.38. The 52-week high of the stock was at $468.35 apiece, and the 52-week low of the stock was at $344.79. Microsoft Corp. is a large-cap company with a market cap of $3.242 trillion, operating in the technology sector.
Latest News about Microsoft
- Microsoft shares have gained about 12.6% since its post-earnings. Azure revenue increased 35% year-over-year (constant currency), beating estimates and leading BMO, Bank of America, and Mizuho to raise their price targets to $485–$515.
- After the earnings beat, Morgan Stanley lifted its MSFT target from $472 to $482, Jefferies raised theirs to $550, and Wedbush to $515, all citing strong quarterly results and ongoing demand for generative AI.
- DBS Bank maintains a Buy rating on MSFT with a $485 target, pointing to strength in AI and cloud computing as the main growth drivers.
Microsoft Stock Price Prediction 2025 – Phillip Capital
Phillip Capital has downgraded Microsoft from “Buy” to “Accumulate,” citing the recent strong share price rise limits gains in the near term. The firm maintains a price target of $480, based on a discounted cash flow (DCF) model with a weighted average cost of capital (WACC) of 7.2% and a long-term growth rate of 4.5%.
In Q3 FY25, Microsoft reported revenues of $70.1 billion, an increase of 13% compared to the same period last year, with cloud services playing a major role. Azure and other cloud services increased by 33% over the year, while Office 365 commercial cloud revenue increased by 14% in the same time frame. For Q4 FY25, Microsoft expects revenue to reach $73.7 billion. This forecast assumes Azure revenue will increase by 34.5% and Office 365 commercial cloud revenue will increase by 14%.
Phillip Capital says the downgrade is driven by valuation concerns rather than doubts about Microsoft’s business. The firm notes that Microsoft is well placed to benefit from growing demand for large AI models through Azure and its Copilot AI tools. It also points out that Microsoft’s large enterprise customer base and focus on cloud services keep it less exposed to changes in trade tariffs.
Microsoft Stock Price Prediction 2025
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