Morgan Stanley Raises Microsoft Price Target on AI Strength, Names It Top Pick
Morgan Stanley analyst Keith Weiss elevated Microsoft's price target from $582 to $625, citing generative AI leadership and cloud migration tailwinds. The 'Top Pick' designation replaces Atlassian in large-cap software, with Weiss noting Microsoft's 'clearest positive risk/reward' profile.
The revised target implies 22.2% upside for MSFT shares, which have already gained 21% YTD. Microsoft's dominance in cybersecurity ($40B+ revenue) and enterprise cloud adoption were highlighted as underappreciated durability factors supporting high-teens total returns.