Citi Cuts Microsoft Price Target to $570, Maintains Buy Rating

Citi lowered its price target for Microsoft (MSFT) from $620 to $570, while keeping a 'Buy' rating. The adjustment comes after the stock fell 10%, as analysts believe software multiple compression may persist.

Rating Change

• Previous Price Target: $620
• New Price Target: $570
• Rating: Buy (unchanged)

Analyst Rationale

The Citi analyst attributes the recent decline primarily to 'multiple compression' in the software sector, rather than a deterioration in Microsoft's fundamentals. The core story remains intact, with strong revenue growth expected from cloud services and AI.

Context

Microsoft shares have dropped about 10% recently, pressured by broader tech sell-offs. Other analysts are mixed; some see the current valuation as an attractive entry point, while others warn of further pressure. The stock is still up roughly 20% year-to-date.

Conclusion

The price target cut reflects near-term caution due to valuation headwinds, but the maintained 'Buy' rating signals confidence in long-term prospects. Investors may see the dip as an opportunity, but should monitor sector developments.