Baird Analyst Bullish on Microsoft as AI Leader, Initiates Coverage with $600 Price Target
Baird analyst William Power has initiated coverage on Microsoft (MSFT) with an Outperform rating and a $600 price target, citing the tech giant's dominant position in the AI revolution. The 19.2% upside projection comes despite a 2.1% monthly pullback in MSFT shares, which remain up 19.4% YTD.
Microsoft's fiscal Q1 2026 results showcased particular strength in its Azure cloud division, fueled by AI-driven demand. Power highlights the company's end-to-end AI platform capabilities, bolstered by its strategic partnership with OpenAI, as a key differentiator in both enterprise and consumer markets.
The analyst notes Microsoft's rare ability to maintain double-digit revenue growth at scale, with its comprehensive suite of cloud applications creating multiple monetization pathways in the AI ecosystem. This institutional endorsement arrives during a period of market recalibration around AI valuations.
