Microsoft Corp (NASDAQ:MSFT) shares are rising Wednesday. Piper Sandler raised its price target on the stock while maintaining an Overweight rating. Here’s what you need to know.
- Microsoft shares are advancing steadily. Why is MSFT stock advancing?
Piper Sandler Raises Its Microsoft Price Target to $610
Piper Sandler analyst Billy Fitzsimmons maintained an Overweight rating on Microsoft, raising the price target to $610 from $550.
The move follows Microsoft’s recent “Super App” announcement. Fitzsimmons pointed to a slow but steady shift of customers into Microsoft’s new E7 pricing tier. The analyst also noted that a growing share of Copilot and Cowork revenue now comes from usage-based pricing rather than flat, per-seat fees.
To capture that shift, Fitzsimmons built a new model, which estimates how many customers sit in Microsoft’s E3, E5 and E7 tiers. It also projects how much revenue per user could grow as more customers move up to E7. The model separately tracks how fast Copilot and Cowork consumption revenue could scale within Microsoft’s commercial cloud business.
By the analyst’s math, each 10% of customers who move from E5 to E7 could add about $2 billion in annualized revenue. Fitzsimmons expects that effect to build slowly at first rather than show up right away.
On the consumption side, the analyst sees Copilot and Cowork revenue reaching a $2 billion annualized pace by the close of fiscal 2028. Fitzsimmons also said that would mark roughly double the speed at which Microsoft’s existing seat-based Copilot product scaled.
Fitzsimmons tied Copilot and Cowork’s appeal to cost efficiency. The analyst said Microsoft’s internal tools for coordinating and automatically routing tasks between different AI models let the company complete work more cheaply than using top-tier AI models on their own.
The Piper Sandler analyst noted that edge, combined with rising confidence in Microsoft’s broader Office 365 business, is what pushed him to raise both his revenue estimates and the valuation multiple behind his new $610 target.
Other recent analyst actions have also skewed constructive: Stifel upgraded Microsoft to Buy from Hold on Sept. 23 and raised its price target to $575 from $530, while Oppenheimer maintained Outperform on Sept. 22 and raised its target to $570 from $515. Cantor Fitzgerald also maintained Overweight on Sept. 21 and raised its price target to $608 from $522.
Benzinga’s consensus shows a Buy rating with a consensus price target of $571.29, with published targets ranging from $480 to $700.
The move in Microsoft on Wednesday comes as the broader tech group trades higher, with the Technology sector showing strength and several large-cap software names advancing.
MSFT Shares Are Climbing
MSFT Price Action: Microsoft shares were up 1.94% at $518.83 at the time of publication on Wednesday, according to Benzinga Pro.
Microsoft stock is trading above its 20-day, 50-day and 200-day moving averages with the longer-term trend structure pointed up. Shares are currently trading between support near $486 and resistance around $553.50.
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