BofA Securities Reiterates Buy on Microsoft, $500 PT

BofA Securities analyst Tal Liani reiterated a Buy rating and $500 price target on Microsoft (NASDAQ: MSFT).

“The key takeaway from 2Q results is increasing validation of Microsoft’s AI strategy.

Revenue grew 17% YoY in constant currency and EPS reached $4.74, ahead of Street expectations of 14.8% and $4.25, respectively.

Azure revenue rose 43% YoY versus 39.6% expected, while Copilot seat additions more than doubled sequentially.

RPO increased by $51bn QoQ to $678bn, with all growth driven by non-frontier model customers, highlighting broad-based AI demand.

We believe the setup remains attractive, with MSFT trading at just ~19x CY27 P/E and supported by strong revenue visibility from RPO conversion.

We are modestly raising estimates to reflect a stronger outlook and reiterate our Buy rating and $500 price target.”

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