Microsoft Corporation (NASDAQ:MSFT) is trending Monday after Melius upgraded the stock to Buy from Hold and set a price target of $665.
- Microsoft stock is showing positive momentum. What’s the outlook for MSFT shares?
AI Security Demand Drives a $665 Price Target
According to Investing.com, analyst Ben Reitzes cited increased enterprise demand for AI security and governance solutions. He said Microsoft’s stock has risen about 40% from its June low of $353 and now trades near its 52-week high of $553.72. Melius raised its fiscal 2027 earnings estimates by 2% and fiscal 2028 by 4% and initiated a fiscal 2029 estimate of $30.77 per share, about 7% above consensus. The $665 target represents about 22 times that fiscal 2029 estimate.
Melius expects Azure to grow more than 50% by the fourth quarter of fiscal 2027. The firm said enterprises are choosing to spend on secure systems that can route AI models and secure agents rather than relying directly on AI labs. The upgrade follows recent statements from AI company executives that heightened concerns about AI risks, which Melius said has driven immediate interest from enterprise resellers in Microsoft’s security offerings.
In other recent news, Microsoft announced the departure of Ryan Roslansky, the executive vice president overseeing M365 apps and a former LinkedIn CEO, while Piper Sandler raised its price target on the stock, citing growth in Copilot and Cowork, and maintained an Overweight rating.
Microsoft is scheduled to report first-quarter fiscal 2027 results later this month, with its Ignite conference planned for mid-November.
Microsoft Shares Trade Flat
MSFT Price Action: At the time of publication, Microsoft shares are trading 0.42% higher at $519.69, according to data from Benzinga Pro.
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