BMO Capital Reiterates Outperform Rating on Microsoft (MSFT)

BMO Capital analyst Keith Bachman reiterated an Outperform rating and $500.00 price target on Microsoft (NASDAQ: MSFT).

The analyst commented, "We are revisiting our depreciation and capital expenditure analysis with a focus on MSFT’s FY26 gross margins and operating margins. Based on assumed longer depreciation schedules, we are raising our FY26 gross and operating margin assumptions and not making any changes to our FY25 estimates. We believe that P/E is the most relevant valuation metric for MSFT and Oracle and that elevated levels of cap ex and thus depreciation may limit margin expansion in the near and medium term. No changes to our Outperform rating and $500 target price."

For an analyst ratings summary and ratings history on Microsoft click here. For more ratings news on Microsoft click here.

Shares of Microsoft closed at $417.13 yesterday.

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