Wells Fargo Raises Microsoft's Price Target from $650 to $700

August 12th, Wells Fargo raised Microsoft's stock price target from $650 to $700 and maintained a Buy rating on the stock.

The institution pointed out that the open model has accelerated the smart diffusion by reducing costs and expanding availability. It also noted that its Chief Information Officer survey showed that customers are increasingly adopting a hybrid model approach.

Wells believes that the current platform's terminal value continues to increase, which will improve the P/E ratio, outperforming the market's previous pricing. However, given investors' increasing focus on the intensifying competitive landscape, it also expects the ongoing yield dispersion between software winners and losers.