All articles tagged with #stifel
Stifel analyst Brad Reback cuts Microsoft’s price target to $400, arguing that the expansion of AI- and cloud infrastructure spending could pressure profitability. He estimates fiscal 2027 gross margin around 63%, below the consensus ~66.5%, due to higher capital expenditures and depreciation tied to AI data centers, and suggests that current earnings forecasts may be too high as a result.
Stifel lowers Microsoft’s price target to $400, warning that Street FY27 gross-margin estimates don’t fully reflect Azure-driven margin compression and ongoing cloud capex. The firm models FY27 gross margins around 63% (about 450 bps below the consensus 66.5%), with Azure margins near 47.5% still dragging overall margins by roughly 300 bps YoY due to mix shift. Higher operating expenses and finance lease costs could keep FY27 EPS about $1 below Street expectations (roughly $18.5–$19 vs. ~ $19.5).
Stifel warns that the current 'party' in the stock market may be disrupted by a sudden economic slowdown, suggesting potential volatility ahead.
Stifel analysts upgraded Micron Technology to a Buy rating with a price target of $120 per share, diverging from Wall Street's 2025 estimates and citing the company's potential for exponential growth in memory storage and AI hardware. The stock rose 3% following the upgrade, with Stifel highlighting Micron's strong position in the DRAM industry and AI demand, while Mizuho expressed concerns about the rally in chip stocks.
Stifel strategist Barry Bannister, who has been accurate in his stock market predictions, believes that after a strong start to the year, stocks may struggle to regain momentum and end the year on a high note.