Analysts are out with a buy rating on Microsoft (MSFT).
Wedbush Securities Dan Ives, for example, just raised his price target on the tech giant to $550 from $500. All thanks to positive AI feedback on the company’s Copilot and Azure.
“We are raising our price target on Microsoft from $500 to $550 reflecting incrementally bullish recent AI customer checks with a tidal wave of Copilot and Azure monetization now on the doorstep for MSFT. We have seen AI deal conversions for the enterprise accelerating,” Ives wrote, as noted by Benzinga.com.
However, as much as we like Dan Ives’ opinion on stocks, we wouldn’t buy MSFT just yet.
Also, while 34 analysts have a buy rating on the stock, we wouldn’t listen to them either.
At least, not yet. While we also agree MSFT could push aggressively higher, we’d wait for it to pull back first. At the moment, it’s technically overbought and overdue for a pullback. In fact, if you pull up a two-year chart of MSFT, you’ll see it. It’s also over-extended on RSI, MACD and Williams’ %R. The same setup was met with declines in MSFT about 10 times since 2022.
In short, wait before buying along with other analysts.
The better option with Microsoft is to either short it, or buy a put short term.