Microsoft can navigate a consumer slowdown better than most major tech companies, making it an attractive investment, according to D.A. Davidson. Analyst Gil Luria upgraded Microsoft shares to buy from neutral. He also increased his price target by $25 to $450, which implies shares could rise 17.4% from Wednesday’s close. Within the “Magnificent Six,” Microsoft has the lowest degree of consumer exposure — with the exception of Nvidia, according to Luria. The Magnificent Six refers to a group of major tech companies made up of Microsoft, Nvidia, Alphabet, Meta Platforms, Apple and Amazon. “We see Microsoft as the best positioned Mag6 for a consumer slowdown, which will make it a key shelter in the storm,” the analyst wrote in a client note on Thursday. Consumer confidence has taken a hit recently due to worries around the Trump administration’s trade policies along with persistent inflation. The Conference Board’s consumer confidence index had its biggest drop since 2021 in February . “While the extent of the consumer slowdown may still be unclear, we believe some slowdown is more likely than not. This would mean less risk for Microsoft’s earnings estimates than the rest of the mega caps, making it the most likely of the Mag6 to become defensive,” Luria added. Shares have dipped around 3.5% in March and are down more than 9% in 2025. The stock’s valuation is now “significantly more attractive,” per Luria. MSFT YTD mountain MSFT year to date Microsoft trades at nearly 31 times trailing earnings, while Apple and Amazon have multiples above 34. Nvidia sports at multiple of 39. Meta Platforms and Alphabet are slightly cheaper, however, on a price-to-earnings basis. “We believe Microsoft has now rationalized its approach to capex, thus protecting future margins and [return on invested capital],” said the analyst. Most analysts are bullish on Microsoft. Of the 57 who cover the stock, 52 rate it a buy or strong buy, according to LSEG. The average price target also implies upside of 31%.
