Stifel Lifts Microsoft Target to $530 Amid AI Momentum

Stifel analyst Brad Reback has revised his price target for Microsoft to $530, citing significant improvements in Copilot engagement and Azure efficiency.

In a recent update, Reback mentioned that Microsoft's executives described the second half of 2026 as a 'step change' in Copilot deployment, with weekly active engagement now on par with Outlook and Teams.

This increased adoption is expected to lead to higher premium upgrades to E5, Microsoft 365 Copilot, and E7, with much of the new seat growth coming from lower-priced segments.

However, Reback maintained a Neutral rating for Microsoft, expressing concerns that the risk-reward case remains insufficient for a Buy recommendation.