Microsoft Just Got a $725 Price Target as Wells Fargo Bets on Its AI Edge

Wells Fargo added Microsoft (MSFT) to its Tactical Ideas list, raising its price target to $725 from $700. The firm cited upcoming product launches, new financial disclosures, and AI advancements as catalysts. Microsoft will simplify its reporting structure, which may provide more insight into Azure's performance. The company's Ignite conference in November is expected to reveal more about AI models and custom silicon. Investors will focus on Azure's revenue growth in the October results.

Oracle reported negative free cash flow, raising concerns about AI financing. Microsoft, despite short-term balance sheet strain, showed strong cloud growth. Oracle plans to raise $40B in debt/equity. Microsoft expects to remain free cash flow positive in FY27. Investors are pricing in differences in self-funding capabilities.

Wells Fargo added Microsoft (MSFT) to its Q4 Tactical Ideas list, citing AI advancements and business segment reorganization. Analyst Michael Turrin raised the price target to $725. Microsoft is modestly undervalued with a GF Value of $589.05, and has a GF Score of 99. Insider selling dominates, but 53 premium gurus hold shares.

JP Morgan has given Microsoft Corporation a Buy rating, based on a weighted average of various composite ratings including valuation, EPS revisions, and visibility. The rating considers factors such as fundamentals, financial health, and ESG practices.

Microsoft is disabling Exchange Web Services (EWS) by default in Exchange Online, which may stop Apple Mail and Calendar apps on Mac from syncing Microsoft 365 accounts. The cutoff is part of a phased rollout, with a permanent shutdown planned for April 1, 2027. Apple is working with Microsoft to transition to the Microsoft Graph API in a future macOS update, but the update has not yet been released. Affected organizations can keep EWS running or switch to a Graph-compatible client like Outlook.

The FTC is investigating Anthropic, OpenAI, and other AI labs over risks posed by rogue AI agents, following recent incidents. The agency will compel testimony from executives and research groups. Anthropic and OpenAI have reported thousands of security incidents involving their models. Both companies face regulatory and legal risks, with Anthropic warning of significant legal risks in its IPO prospectus.