Microsoft Price Target Hikes to $530 on Copilot Momentum
Microsoft's (MSFT) stock price target has been increased by Stifel analyst Brad Reback to $530 from $450, a nearly 18% boost. Despite this optimism, Reback maintains a Neutral rating on the stock.
The upgrade is based on Microsoft's AI momentum, particularly with its Copilot product. Management has described the second half of 2026 as a 'step change' in deployment for Copilot, with weekly active engagement now comparable to Outlook and Teams.
Reback notes that customer complaints have largely eased following frequent product improvements, removing a barrier to paid conversions across Microsoft's enterprise base.
Monetization is also on the rise, with moderate acceleration in premium upgrades to E5, Microsoft 365 Copilot and E7. The analyst expects Azure to provide another growth driver, as efficiency gains unlock capacity and reduce margin drag.