Bank of America Microsoft · MSFT

BofA Securities Reiterates Buy on Microsoft, $500 Price Target

1 min read Reproduced verbatim
Rating
Buy
Unchanged
Target
$500
from $585 (−15%)
Outcome
Reached
on August 10, 2026
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What the analyst said

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.”

Disclaimer
The price target and rating on this page are the opinion of the issuing research firm and its analyst, not of Price Target. This page is published for informational purposes only and is not investment advice, a recommendation, or an offer to buy or sell any security. Past performance does not guarantee future results. Consider your own circumstances and consult a licensed financial adviser before making investment decisions.

This research note is reproduced verbatim from the issuing firm. Price Target never edits, paraphrases or alters analysts’ words — we only republish them in one place.

Where the price stands

MSFT trades at $536. The 28 analysts who set a target in the last 3 months range from $515 to $750, with a median of $630. This $500 target is 21% below the median, the lowest on the Street.

Since the note MSFT has moved +37% (from $391). 12-month window: day 98 of 365, closes on July 30, 2027.

Track record

This call✓ Target reached on August 10, 2026, 11 days after the note.

Firm track recordBank of America: 80% of its 50 targets at least a year old were reached within 12 months (#10 of 26 firms). Accuracy ranking →

Earnings reactionOne of 18 notes after Microsoft’s Jul 29 results: 10 raised · 1 cut · 7 kept. See every call →

Bank of America on Microsoft

Bank of America price targets on Microsoft

4 calls from July 18, 2025 to October 29, 2026. The target went from $585 to $630 (+8%). The rating stayed Buy.

Bank of America targetMSFT share price
  1. October 29, 2026Target raised from $600 (+5%)Buy$630
  2. September 1, 2026Target raised from $500 (+20%)Buy$600
  3. July 30, 2026 This noteTarget cut from $585 (−15%)Buy$500
  4. July 18, 2025Earliest call shownBuy$585
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Other analysts on Microsoft

BairdBuy Raised price target +20%, kept rating Oct 30 $600from $500 ArgusBuy Kept rating Oct 30 UBSBuy Raised price target +4%, kept rating Oct 29 $700from $675 TD CowenBuy Raised price target +4%, kept rating Oct 29 $650from $625 CantorBuy Raised price target +4%, kept rating Oct 29 $630from $608
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Price Target is an archive of Wall Street analyst research, published for informational purposes only. Nothing on this site is investment advice, a recommendation, or an offer to buy or sell any security. Analyst ratings and price targets are the opinions of the issuing firms, not of Price Target. Always do your own research or consult a licensed financial adviser.