Citi flag: lower Microsoft target to $570 to maintain “buy-in” rating

On 15 July, Citi released a study pointing to a downward adjustment in Microsoft's target price from $620 to $570, based on 25 times the projected market rate for the 2028 fiscal year, compared with 28 times previously, as a result of the multi-fold reduction in the valuation of the software industry, while maintaining the “buy-in” rating. The Bank expects strong performance in the fourth financial season; entering the 2027 fiscal year, Microsoft will be able to build on the stronger returns from accelerated growth in its core business (Azure and M365 CoPilot), which will ultimately drive sustained accelerated growth in overall and per share of revenue。