Oppenheimer Boosts Microsoft Price Target to $570 Amid AI Growth

Oppenheimer has revised its price target for Microsoft's stock by 2027. Analyst Brian Schwartz increased his target to $570 from $515 while maintaining an Outperform rating.

The firm's focus on controlling investments and expanding its AI business remains key to their outlook, according to Schwartz.

He expects Azure and Microsoft 365 commercial revenue to continue growing in fiscal 2027 due to factors such as continued Copilot adoption and increased computing capacity.

Schwartz also highlighted improving efficiency and tighter capital allocation as contributors to more predictable capital spending and positive free cash flow this year compared to other cloud providers.