Microsoft’s Stock (MSFT) Gains Bullish Price Targets for 2025

Microsoft's stock (NASDAQ: MSFT) has been an underperformer through 2024, which after gains of 17.36%, demonstrates the relative bullishness in the S&P 500 this year (+25.96%). Moving a company the weight of Microsoft, at $3.24 trillion market cap is no mean feat, yet analysts see a lot more upside in the year to come.

Loop Capital is the latest to have raised their price target on the stock, pushing the mark up from $500 to $550, whilst maintaining a buy rating for the technology giant. This adjustment reflects a broader adjustment on software names for the firm, and sees potential upside of more than 25% for MSFT from here.

Several other financial institutions have also re-rated Microsoft's stock leading into 2025, with almost complete agreement in the direction of the revisions.

• Wolfe Research – Raise to $515 (Prev. $495), maintains Outperform.
• Mizuho – Raise to $510 (Prev. $480), maintains Outperform.
• UBS – Raise to $525 (Prev. $500), maintains Buy.
• Stifel – Raise to $515 (Prev. $475), maintains Buy.

The current consensus above $500 would bring significant new highs for Microsoft, with the current 52-week and all-time-high sitting at $468.35. Should Loop Capital's $550 level be achieved, this would bring MSFT past the $4 trillion market cap level, although they may be beaten to the punch by Apple (AAPL) who's own market cap stands at $3,86 trillion, or Nvidia (NVDA) at $3.42 trillion.

Financial ratios indicate Microsoft's solid financial health, with a quick ratio of 1.29, a current ratio of 1.30, and a low debt-to-equity ratio of 0.15.

On the earnings front, Microsoft reported earnings per share of $3.30, surpassing the consensus estimate of $3.10. The quarterly revenue reached $65.59 billion, marking a significant 16% increase from the previous year. Additionally, Microsoft's Board has approved a $60 billion stock repurchase program, further enhancing shareholder value.

The company are out in front as far as Nvidia chip acquisition through the year, which may help the firm leverage AI in various other ways in times to come. Microsoft is said to have bought 2x that of it's largest rivals, with 485,00 Hopper chips this year dwarfing next best Meta's stockpile of 224,000. What is done with these chips, and how this turns into new revenue streams could set MSFT up for the next leg of the growth story.