Stocks
BofA Lifts Microsoft Price Target to $600 Amid Strong Azure Growth
BofA Securities has raised its price target for Microsoft stock to $600 from $500 while maintaining a Buy rating.
The move reflects growing optimism about Microsoft's AI strategy, as evidenced by its fourth-quarter fiscal 2026 results.
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.
BofA Securities cited Microsoft's strong AI performance as a key factor in its upgraded price target, which is based on 28 times the firm's calendar year 2027 price-to-earnings estimate.