UBS reduced its price target for Microsoft Corp. (NASDAQ:MSFT) from $600 to $510. The firm maintained its Buy rating on the stock.
The adjustment follows investor meetings that raised concerns about the Microsoft 365 and AI Copilot growth narrative. UBS analysts stated that a more positive outlook for these offerings is necessary to justify a higher valuation.
Broader analyst sentiment remains mixed. Bank of America recently reinstated coverage with a Buy rating. The firm set a $500 price target for the stock. Melius analysts expressed separate concerns regarding the current Copilot strategy.
The UBS reduction reflects immediate apprehension about the monetization and adoption of Microsoft's AI solutions. No specific market reaction to the announcement was reported.