Analysts at TD Cowen reiterated Microsoft (MSFT) shares as “Buy” and raised its price forecast on the stock…

Analysts at TD Cowen reiterated Microsoft (MSFT) shares as “Buy” and raised its price forecast on the stock to $540 from $490. According to analyst Derrick Wood, annual recurring revenues at Azure AI, which are a suite of cloud-based AI services, could boost from $4 billion in 2024 to around $24 billion in 2026. Wood said this leap was “conservative with solid room for upside,” and would benefit parent company Microsoft.

“As AI revenue is rapidly building in the Azure model, especially OpenAI’s contribution, we think this will start to put stronger upward pressure on total Azure growth,” Wood said in a note. “We think a return to Azure upside trends and firmer growth in the mid-30% level should help drive a stronger narrative around Azure and greater fund flows back into MSFT.” As AI continues to be a source of revenue growth for Microsoft, MSFT stock will likely climb as new developments come regarding the Windows developer in the AI space.

Executives at Microsoft (MSFT) have also begun making significant stock sales, raising millions from shares in the tech giant. In recent transactions, Judson Althoff, Executive Vice President at Microsoft, sold 16,000 shares at approximately $458 each, totaling an impressive $7.3 million. This move adjusted his holdings to 98,010 shares. Similarly, EVP Kathleen Hogan divested 21,500 shares priced at $454 each, accumulating $9.8 million, while still retaining 134,887 shares.

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Wall Street is bullish on Microsoft (MSFT), as evidenced by one-year price targets from 49 analysts. The average target is set at $505.25, with forecasts ranging from a low of $423.00 to a high of $650.00. With Microsoft’s current stock price at $450.18, the average price target suggests a potential upside of 12.23%.

Alternatively, CNN analysts suggest MSFT is most likely to perform neutral, in line with market averages, over the next 12 months. They also suggest MSFT could hit a high of $650.00 in the next 12 months. Furthermore, 92% of the 63 analysts surveyed by the platform suggest buying Microsoft stock.