Melius Research analyst Ben Reitzes raised his price target on Microsoft to $665 from $465, framing the stock as a winning play for investors seeking safer exposure to the AI trend. The call comes as Microsoft's broader reputation for financial discipline draws growing praise on Wall Street.
Ben Reitzes at Melius Research raised his price target on Microsoft shares to $665 from $465 on Monday, pointing to the company's measured approach to artificial intelligence spending. Microsoft shares were up 1.45% as the note circulated.
Analysts have already praised Microsoft for keeping its AI spending in check, and other aspects of the company's maturity are now winning praise on Wall Street as well. Reitzes framed Microsoft as a winning play for investors looking for safer bets on the AI trend, according to the note.
He argued that CEO Satya Nadella and his team will be seen as the industry's responsible stewards as the AI narrative shifts. Investors are looking for safer ways to play the AI trend following warnings from Anthropic CEO Dario Amodei and others about the technology's dangerous potential.
Microsoft's legacy software portfolio and its cybersecurity offerings could thrive in that environment, the note said.
Source: MarketWatch (snippet-based)
Trading involves risk.