Jefferies’ $675 Microsoft Stock Forecast: Why This Bullish MSFT Prediction Makes Sense

Jefferies has issued a stark warning for Microsoft (NASDAQ: MSFT) investors, forecasting a dramatic 10% correction despite upgrading its price target to $675. The global investment bank's bullish yet cautionary outlook comes as MSFT shares remain deep in bearish territory, having plunged nearly 27% over the past six months and continuing to bleed value weekly.

Jefferies Price Prediction of $675: Why Microsoft Stock Could Reach The Target

The core reason provided by Jefferies that Microsoft stock could reach $675 is that its valuation is attractive and is relative to growth. The valuation of the firm stands at $2.84 trillion and could soar after the AI growth. In addition, the tech titan has positioned itself as a strong enterprise in AI with investments worth billions.

Jefferies also wrote that Microsoft stock is currently at a bargain with its price down 22% year-to-date. The earnings growth also saw an uptick with a surge of 28.85% in Q2 2026. The development highlights the company’s strong profit-generating capability, assuring investors of an upcoming bull run. This makes MSFT lucrative as it’s currently trading at the bottom of the barrel.

If Jefferies price prediction on Microsoft stock turns out to be accurate, an investment of $1,000 could balloon into $1,800. That’s phenomenal returns and is close to doubling investors’ money. The risk-to-reward ratio is high, and an investment now during its dip could prove beneficial. Accumulating MSFT during the upcoming dips stemming from the Middle East conflict is a better idea.