Citi analysts led by Tyler Radke lowered their price target for Microsoft stock to $570 [1], down from a previous target of $620 [2].
The adjustment comes as investors scrutinize the sustainability of massive artificial intelligence investments. While the target price has dropped, the firm maintained its Buy rating for the company [4].
Citi said near-term concerns regarding the AI-spending cycle and capital expenditure digestion were the primary drivers for the lower valuation [5]. These factors suggest a period where the company and its clients may slow the pace of spending to realize value from previous investments.
Despite the lower target, the analysts expressed confidence in the company's core products. Citi said it remains positive on Microsoft (MSFT) with positive checks, particularly on CoPilot, and expects strong Q4 [6].
This move is not isolated to a single firm. The 247WallSt editorial team said Citi and Mizuho both cut their Microsoft price targets before fiscal Q4 earnings, yet both firms kept their bullish ratings intact [7].
The market is now looking toward the official financial results. Microsoft is scheduled to report its fiscal Q4 earnings on July 29, 2026 [3].
The stock, traded on the NASDAQ, continues to be a focal point for analysts tracking the intersection of cloud computing and generative AI [8].
“Citi cut its Microsoft price target to $570, down from $620, while keeping a Buy rating.”
The reduction in price target reflects a broader market tension between long-term optimism for AI and short-term anxiety over the cost of building that infrastructure. By maintaining a Buy rating while lowering the target, analysts are signaling that while the stock may be slightly overvalued at current levels, the underlying business fundamentals and the adoption of tools like CoPilot remain strong.
