Citizens JMP Securities initiated coverage of Microsoft with a Market Outperform rating and $550 price target, citing strong positioning in enterprise AI and attractive valuation following a recent pullback.
Citizens estimates Microsoft's total addressable market could expand from roughly $1.8 trillion in 2025 to $5.1 trillion by 2030, driven by growth in AI software, infrastructure, cybersecurity, and enterprise applications. The firm projects fiscal 2026 revenue of $329.5 billion and non-GAAP earnings per share of $16.81, with operating margins expanding to 47%.
Citizens identified risks including increased competition from AI-native companies, uncertainty around AI monetization and pricing models, rising capital expenditures for AI infrastructure, and Microsoft's exposure to OpenAI-related commitments.
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