Wells Fargo raises Microsoft price target to $650 from $625; Citizens initiates coverage with $550 target

On June 1, Wells Fargo analyst Michael Turrin lifted its price objective on Microsoft to $650 from $625 and kept an "Overweight" rating. Citizens initiated coverage with an "Outperform" rating and a price objective of $550.

Wells Fargo believes Microsoft is better positioned at the software layer than the market realizes and is making the right moves on capacity, models, and Copilot (an AI assistant). Citizens sees an attractive opportunity for capital appreciation and believes the company is well-placed to benefit from tech trend evolution across multiple categories.

Microsoft's stock is down approximately 6% year-to-date amid investor concerns about dependence on third-party AI models and questions about its AI strategy following its latest earnings report.