Raymond James maintains $490 target on Microsoft stock

Investing.com

Published May 20, 2025 06:53AM ET

Raymond James maintains $490 target on Microsoft stock

On Tuesday, Raymond James reaffirmed its positive stance on Microsoft Corporation (NASDAQ:MSFT), maintaining an Outperform rating and a price target of $490.00. The tech giant, currently trading at $458.87 and boasting a market capitalization of $3.41 trillion, has seen 25 analysts revise their earnings estimates upward for the upcoming period, according to InvestingPro , supports its continued investment in AI innovation.

Marok noted that this year's keynote speech significantly expanded on the previous year's, with a focus on evolving AI agents from standalone applications to elements of a more interconnected network. The concept of an "agentic web" was central to many of the announcements at the conference, which aimed to enhance the capabilities of AI agents by integrating them across various functions. This integration is expected to enable the handling of more complex tasks than what individual agents could manage alone.

The analyst pointed out that the enhancements in Microsoft's AI services are seen as highly beneficial, potentially enabling power users to achieve more while also addressing some of the earlier criticisms regarding the limited scope of AI agents. Marok's observations at the conference reinforced his view that Microsoft is well-positioned to continue its momentum in the field of AI.

Microsoft's ongoing efforts to develop and integrate AI technologies into its services are part of the company's broader strategy to remain at the forefront of innovation. With impressive revenue growth of 14.13% and trading near its 52-week high, the company maintains strong momentum. While Raymond James signals confidence with its Outperform rating, InvestingPro's Fair Value analysis suggests the stock may be currently overvalued, trading at a P/E ratio of 35.21.

In other recent news, Microsoft Corporation has seen notable developments with significant implications for investors. Goldman Sachs has raised its price target for Microsoft to $550, citing the company's advancements in artificial intelligence and a forecasted boost in cloud revenue. Similarly, Citi has increased its price target to $540 following Microsoft's strong fiscal third-quarter results and anticipated capital expenditure growth. Both firms maintain a Buy rating on the stock, highlighting confidence in Microsoft's strategic initiatives and financial outlook.

In another development, Proofpoint (NASDAQ:PFPT), Inc. has announced plans to acquire Hornetsecurity Group for $1 billion. This acquisition aims to bolster Proofpoint's cybersecurity offerings, particularly for small and mid-sized businesses. Hornetsecurity's annual recurring revenue stands at over $160 million, with a growth rate exceeding 20% year-over-year, making it a valuable addition to Proofpoint's portfolio.

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Additionally, Microsoft is likely to see a resolution in its ongoing pricing dispute with the European Union over its Teams app, as regulators are expected to accept Microsoft's proposal. This development stems from a complaint by Slack and could prevent potential antitrust penalties. These recent events highlight key strategic moves and financial projections for Microsoft and Proofpoint, providing investors with valuable insights into their future prospects.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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