Oppenheimer Upgrades Microsoft to Outperform, $600 Price Target
- Rating
- Buy
- Price target
- $600
- Implied upside
- +21%
- vs $496.62 prior close
Oppenheimer analyst Brian Schwartz upgraded Microsoft (NASDAQ: MSFT) from Perform to Outperform with a price target of $600.
“We upgrade MSFT to Outperform from Perform and establish a $600 PT.
In our view, investors’ attention on the ramp of Microsoft’s AI revenue stream will only increase as Azure’s growth remains strong, offering not only valuation support (akin to AWS underpinning Amazon’s valuation), but also upside potential as this revenue stream continues scaling fast and investors embrace Microsoft as one of the long-term AI winners in software.
In our view, sustaining robust growth in its AI business is not fully in the stock, nor is a reacceleration in Azure’s growth in FY26.
Further, Microsoft is one of only a few vendors in the software industry capable of delivering a Rule of 60 business profile and at unprecedented scale, which we think lends good support to premium multiples.”
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Tracking this call
Since this note+7% MSFT $496.62 → $529.30 (Oct 7) · 32% of the way to the target
This call at 6 months✗ Not reached in six months: MSFT closed at $478, 20% below the $600 target, and it moved the other way. At 12 months: not reached.
Firm track recordOppenheimer reached 73% of its 11 scored targets within six months (#12 of 31 firms); on Microsoft, 0 of 2. Accuracy ranking →
