Bank of A Securities reiterated its "Buy" rating on Microsoft. The firm raised its price target to $600 from $500.
Analysts cited validation of Microsoft's artificial intelligence strategy. This followed the company's fourth-quarter fiscal 2026 results.
The decision stemmed from accelerating growth in Microsoft's Azure cloud platform. Azure revenue growth increased to 43% in the fourth quarter. Guidance for the first quarter of fiscal 2027 projects 45% growth.
BofA expressed confidence in Microsoft's long-term position. This includes AI infrastructure, models, and applications such as M365 Copilot.