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Investing.com - Jefferies maintained its Buy rating and $675.00 price target on Microsoft (NASDAQ:MSFT) stock in a research note released Monday. This target aligns with the broader Wall Street sentiment, as the $3.51 trillion tech giant currently has a strong consensus recommendation of 1.25, with analyst price targets ranging from $483 to $730.
The firm noted that Copilot adoption is accelerating as the product has matured, with deployments shifting from gradual to enterprise-wide rollouts across Microsoft’s customer base. This adoption is contributing to Microsoft’s impressive 15.59% revenue growth over the last twelve months.
Jefferies observed that while AI agents are emerging in Microsoft’s ecosystem, this development remains in very early stages, describing it as the "1st half of 1st inning" in terms of market maturity.
The research highlighted that artificial intelligence is driving growth in non-AI workloads for Microsoft, though the company currently faces capacity constraints in meeting demand.
Jefferies also pointed to strong core cloud demand, noting that Microsoft is capturing market share in cloud migrations due to its comprehensive end-to-end platform offerings.
In other recent news, Microsoft has been the focus of several analyst firms following its annual Ignite conference in San Francisco. UBS has reiterated its Buy rating on Microsoft with a price target of $650, highlighting insights from a group investor meeting with Microsoft CFO Amy Hood. Similarly, Stifel has maintained a Buy rating, noting the momentum of Microsoft’s Copilot technology, which has gained traction more than two years after its release. Evercore ISI also reiterated an Outperform rating, following positive interactions with Microsoft executives, including Charles Lamanna, President of Business & Industry Copilot. TD Cowen echoed this sentiment, reaffirming a Buy rating and a $655 price target, emphasizing Microsoft’s leadership in AI solutions and its efforts to integrate AI into workflows. Meanwhile, OpenAI, closely associated with Microsoft, has launched a free ChatGPT for Teachers platform, available to U.S. K-12 teachers through June 2027, aiming to enhance educational interactions with AI tools. These developments reflect ongoing interest and confidence in Microsoft’s strategic direction and technological advancements.
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