Here’s a concise summary based on the GuruFocus article “Microsoft (MSFT) Projects Generative AI Boost with OpenAI Contributions”: Key Takeaways:
Morgan Stanley’s Outlook: Microsoft’s Azure revenue is projected to increase significantly, largely powered by innovations from OpenAI. The bank’s revised price target for Microsoft stock is $530, anticipating a strong 33% annual growth for Azure through 2028.
Analyst Consensus: The average one-year price target from 49 analysts is $516.16 (range: $423–$650), vs. a current stock price of $495.94. This implies a potential upside of about 4%.
Brokerage Recommendations: 62 brokerage firms give Microsoft a rating of 1.8 (“Outperform” status, where 1 = “Strong Buy” and 5 = “Sell”).
GuruFocus Valuation: The one-year projected GF Value is $505.39, suggesting a 1.91% upside from current prices. This is based on Microsoft’s historical trading multiples, business growth, and forward-looking forecasts.