UBS Slashes Microsoft Stock Target by $90: World’s Largest Wealth Manager Issues Stark Warning
UBS, the world's largest wealth manager, has issued a stark warning by slashing its price target for Microsoft (NASDAQ: MSFT) by $90, citing a re-evaluation of the global economic outlook amid Middle East conflicts. The dramatic cut signals that while the tech giant may still deliver gains, its profit potential for traders is now significantly capped, positioning MSFT as a critical equity to watch despite the downward revision.
What Is UBS’s New Price Target For Microsoft Stock?
Investment bank UBS lowered Microsoft’s stock price target to. That’s a reduction of $90, even after maintaining a ‘buy’ call for MSFT. Controversy erupted on Copilot after the company was accused of tricking millions of users into forced subscriptions to the product.
Microsoft stock is currently trading at $371, and the $510 target leads to an upswing of 37%. An investment of $1,000 could turn into $1,370 if the UBS forecast on MSFT turns out to be accurate. The previous target of $600 could have delivered returns close to 62%.
Why Did the World’s Largest Wealth Manager Cut $90 in Its Target?
UBS analyst Karl Keirstead lowered the target because he wants to see better financial results from Microsoft 365 and Copilot, but he still likes the stock at its current valuation. The world’s largest wealth manager wants clear financial returns from AI adoption and Copilot subscriptions before pushing the stock back to its previous target.
How Has the Equity Performed Recently?
Microsoft stock opened Thursday’s bell at $371 after slipping for three consecutive days in the charts. MSFT is among the least-performing Magnificent 7 stocks, plunging nearly 22% year-to-date. Traders who took an entry position in the equity this year are all underwater with losses. Even after the bearish sentiments, UBS remains positive on MSFT’s prospects.
