Stifel Upgrades Microsoft to Buy as Cloud and AI Monetization Gains Momentum

Stifel upgraded Microsoft to Buy from Hold on Sept. 23, raising its price target to $575 from $530 on strengthening confidence in the company's cloud and artificial intelligence monetization. The brokerage noted Microsoft is getting back on track, citing mid-to-upper-teens revenue growth expectations, easing gross margin pressures, and Azure efficiency gains. This follows an Oppenheimer price target increase to $570 from $515 on Sept. 22. In its latest reported quarter, Microsoft posted revenue of $90.01 billion and 43% Azure growth, while Microsoft 365 Copilot adoption exceeded 30 million paid seats.