Microsoft stock outlook positive as RBC reiterates Outperform rating

Investing.com - RBC Capital maintained its Outperform rating and $525.00 price target on Microsoft (NASDAQ:MSFT) stock following channel checks with seven Microsoft partners. The tech giant, currently trading near its 52-week high of $514.64 with a market capitalization of $3.8 trillion, maintains a "GREAT" financial health score according to InvestingPro analysis.

The investment firm’s research revealed "healthy cloud" conditions and "phased Copilot rollouts" across Microsoft’s enterprise customer base, according to a note published Monday.

RBC’s channel checks included system integrators, cloud consulting firms, and large enterprise-focused resellers with visibility into Azure deployments and AI adoption efforts, describing the overall tone as "constructive."

The research indicated Azure core workloads remain stable while AI-related interest builds, with Microsoft Copilot appearing more frequently in renewal and expansion conversations, though most customers remain in pilot or department-level usage phases.

RBC also noted evolving commercial structures, with partners reporting shorter Azure terms, flexible ramps, and mid-contract adjustments tied to AI rollout timing, while internal readiness continues to limit broader adoption.

In other recent news, Microsoft has been the focus of several significant developments. BofA Securities raised its price target for Microsoft to $585, citing strong performance in its Azure cloud platform and a projected 35.5% growth in Azure year-over-year. Meanwhile, TD Cowen also increased its price target for Microsoft to $580, highlighting the company’s advantageous position in the AI sector and easing capacity constraints in Azure. In Denmark, Microsoft’s collaboration with the Novo Nordisk (NYSE:NVO) Foundation and EIFO will lead to the establishment of QuNorth, housing the world’s most powerful quantum computer. The initiative involves an €80 million investment and aims to boost Denmark’s position in the global quantum race. In other sectors, Oklo completed Phase 1 of its pre-application assessment with the Nuclear Regulatory Commission for its first powerhouse project, indicating a smooth path forward. Additionally, Tevogen Bio announced the publication of its international patent application by the World Intellectual Property Organization for AI technology that predicts immunologically active peptides. This technology is expected to enhance the development of targeted therapies for diseases.

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