Piper Sandler Reiterates Overweight on Microsoft, $540 PT

Piper Sandler analyst Billy Fitzsimmons reiterated an Overweight rating and $540 price target on Microsoft (NASDAQ: MSFT).

“Microsoft Announces Agentic Security Framework and Security-Specific 1P Model; MSFT today announced its first security-specialized model (MAI-Cyber-1-Flash) alongside a new AI security platform (dubbed Project Perception).

MSFT’s press release noted that MAI-Cyber-1-Flash scored 96% on the CyberGym Benchmark (12 pts higher than Mythos) inside MDASH (MSFT’s harness for SW vulnerability management) at a ~50% lower cost than the current MDASH configuration.

Meanwhile, Project Perception, the new security platform, is designed to coordinate three specialized agent classes in a closed-loop defense system to protect customers.

We are seeing MSFT execute on what they discussed during our mgmt meetings in May (recap: here) and at Build in June (recap: here), building 1P models that are both cost-effective for the end-customer, but allow MSFT to earn better mgns LT.

Debates remain around MSFT’s apps business, but MSFT is the largest security vendor and will therefore play a key role in the agentic security conversation.”

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