Major Bank Ratings | Citi: More Optimistic About Microsoft's Outlook for Q3 Earnings, Reiterates "Buy" Rating
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GLONGHUI April 22|Citi published a research report stating it is more optimistic about Microsoft's third quarter performance outlook, mainly due to positive news from dealer surveys, AI summits, the Fabric conference and intra-quarter non-deal roadshows. Citi pointed out that while current investor expectations and market sentiment are relatively low, and Azure and Office 365 face short-term constraints on growth, fundamentals are believed to be improving and should accelerate throughout fiscal year 2027. Microsoft remains Citi's top pick among mega-cap stocks, with the "Buy" rating reiterated, but the target price was lowered from $635 to $600.
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