KeyBanc Reiterates Overweight on Microsoft, $600 Price Target

KeyBanc analyst Jackson Ader reiterated an Overweight rating and $600.00 price target on Microsoft (NASDAQ: MSFT).

“We continue to focus on the three key line items and debates for Microsoft —Azure capacity and growth, Copilot adoption through Microsoft 365 Commercial Cloud growth, and capital expenditures—but there are so many other things going on at Microsoft.

After looking through the 10-Q and a few more of the line items from last week, we’re highlighting a few things we (and maybe you) hadn’t focused on but don’t want to miss, including future lease commencement, headcount scenarios, depreciation, margin, and more…Leases not yet commenced increased by over $40.0B in the quarter… Headcount expected to decrease in FY27…Windows OEM and Devices revenue decreased 3.0% in constant currency, and MPC decline expected to accelerate…Operating margins and gross margins topped expectations as operating margins expected to expand 100 bps in FY26.”

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