Key Highlights:
- Microsoft's (MSFT, Financial) strategic partnership with OpenAI is under review due to its potential shift towards a for-profit model.
- Analysts' average price target for MSFT suggests a modest upside potential of 6.40%.
- GF Value indicates Microsoft's fair value estimate with an expected upside of approximately 5.24%.
Microsoft's Strategic Reassessment of OpenAI Partnership
Microsoft Corp (MSFT) is currently re-evaluating its collaboration with OpenAI as the latter organization considers transitioning to a for-profit structure. This strategic assessment has led Microsoft to contemplate ceasing negotiations unless pivotal issues, such as its ownership stake — which has fluctuated between 20% and 49% in various discussions — are resolved satisfactorily.
Wall Street Analysts' Price Forecast for Microsoft
Based on projections from 49 financial analysts, Microsoft Corp (MSFT, Financial) has an average price target of $510.99. This forecast spans a high of $650.00 and a low of $423.00, suggesting an upside potential of 6.40% compared to the current trading price of $480.24. For more detailed forecast data, visit the Microsoft Corp (MSFT) Forecast page.
Brokerage Recommendations
The consensus recommendation from 62 brokerage firms places Microsoft's average rating at 1.8, indicating an "Outperform" status. This rating falls within a scale where 1 represents a Strong Buy and 5 signifies a Sell.
Understanding the GF Value Estimate
According to GuruFocus estimates, Microsoft's (MSFT, Financial) one-year GF Value is projected at $505.39. This estimate suggests a potential upside of 5.24% from its current trading price of $480.24. The GF Value reflects GuruFocus' projection of the stock's fair trading price, calculated from historical trading multiples and anticipated business growth metrics. For extensive data, refer to the Microsoft Corp (MSFT) Summary page.
