Here’s What Jefferies Think About Microsoft (MSFT)

Microsoft Corporation (NASDAQ:MSFT) is one of the Best Technology Stocks to Buy for the Long Term. On March 5, Jefferies reiterated a Buy rating on Microsoft Corporation (NASDAQ:MSFT) with a $675 price target. The firm reaffirmed its bullish sentiment after meeting Microsoft’s head of investor relations.

The firm said in a research note that the company’s Azure and Microsoft 365 serve key factors in consolidating its enterprise AI spending. Microsoft 365 alone serves more than 450 million paid users reflecting a robust enterprise distribution network. Moreover, Jefferies also highlighted three core areas of strength for the company including the company’s focus to expand Microsoft 365 total addressable market using AI, AI margins outpacing cloud margins at a comparable growth stage, and reliable infrastructure monetization irrespective of specific AI agents or models.

Here's What Jefferies Think About Microsoft (MSFT)

Pixabay/Public Domain

Jefferies also noted that the company trades at around 21 times its fiscal 2027 earnings per share. This is below the 10-year average of 23.5 times, thereby making it an attractive investment. The firm further highlighted that Microsoft should not trade at its 10-year low of around 15 times forward earnings considering the expanded platform capabilities over the decade.

Microsoft Corporation (NASDAQ:MSFT) is an American technology company that specializes in AI-powered cloud, productivity, and business solutions. The company develops and markets software, services, and hardware.

While we acknowledge the risk and potential of MSFT as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than MSFT and that has 10,000% upside potential, check out our report about this cheapest AI stock.

READ NEXT: 40 Most Popular Stocks Among Hedge Funds Heading Into 2026 and 10 Unstoppable Stocks That Could Double Your Money.

Disclosure: None. Follow Insider Monkey on Google News.