Piper Sandler raised its Microsoft price target to $610 from $550 and reiterated its Overweight rating. The bank cited the revenue potential of Microsoft's AI-powered Copilot application and its new premium Microsoft 365 E7 enterprise package.
The analyst said moderate adoption of higher-tier E5 and new E7 commercial plans could generate tens of billions of dollars in incremental annual recurring revenue. Microsoft has approximately 460 million commercial seats.
The report sees a path for Copilot to reach significant revenue milestones by fiscal 2028 as enterprise adoption of AI tools accelerates.
Separately, Microsoft co-founder Bill Gates warned that AI could facilitate cyberattacks and the development of bioweapons. He highlighted the need for stronger regulatory frameworks as AI capabilities advance.