May 23 - Evercore analyst Kirk Materne raised his price target to $515 from $500 and kept a Buy rating for Microsoft (MSFT, Financial). The new target suggests about a 13% upside from current levels.
The upgrade followed Evercore's recent Microsoft 360 event, where company leaders and partners discussed strategic priorities.
Materne said Microsoft is “all in on AI,” pointing to strong enterprise demand and its dual engines: Copilot productivity tools and Azure cloud services. He noted that only around 20% of IT workloads are in the cloud today, a figure that could rise toward 80%.
He highlighted GitHub Copilot and Copilot for Teams as key adoption drivers, and said free access to Copilot Chat may accelerate user growth.
Materne slightly lifted his fiscal year 2026 estimates, citing robust Azure demand beyond AI. He projects Microsoft's AI business could reach $110 billion by 2028 and reiterated his Buy recommendation.
Is MSFT Stock a Buy Now?
Based on the one year price targets offered by 49 analysts, the average target price for Microsoft Corp is $505.25 with a high estimate of $650.00 and a low estimate of $423.00. The average target implies a upside of +11.08% from the current price of $454.86.
Based on GuruFocus estimates, the estimated GF Value for Microsoft Corp in one year is $500.36, suggesting a upside of +10.00% from the current price of $454.86.
