Stocks
BofA Lifts Microsoft Price Target to $600 Amid AI Growth
BofA Securities has raised its price target for Microsoft stock to $600 from $500 while maintaining a Buy rating. This move aligns with broader Wall Street sentiment, as 17 analysts have revised their earnings upwards for the upcoming period.
The firm cited Microsoft's fourth-quarter fiscal 2026 results as validation of the company's AI strategy. Azure growth accelerated to 43% in the fourth quarter from 39% in the third quarter, with guidance of 45% for the first quarter of fiscal 2027.
Paid Microsoft 365 Copilot seats exceeded 30 million, with net additions more than doubling quarter-over-quarter. Remaining performance obligations increased 84% year-over-year.