Microsoft (MSFT) received a bullish nod from analyst Brent Thrill at Jefferies, naming the tech giant a “Top AI Winner.” The five-star-rated analyst reiterated his Buy rating on MSFT stock at a price target of $600, implying over 18% upside from current levels. The bullish call comes as enterprise adoption of Microsoft’s AI-powered Copilot continues to grow rapidly, with Jefferies projecting over $11 billion in Copilot revenue by 2026.
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Notably, Microsoft Copilot is an AI assistant built into Microsoft 365 apps like Word, Excel, PowerPoint, Outlook, and Teams.
Copilot Could Be Microsoft’s Next Big Money Machine
According to a recent Jefferies survey of 40 enterprises, Microsoft 365 Copilot adoption has climbed to 82%, up from 67% in September 2024. Additionally, Thrill noted that Copilot is also boosting spending on Azure and Microsoft’s security products, with Azure becoming the top choice for cloud migration.
While security challenges still exist, 80% of the companies surveyed plan to increase their spending on Microsoft products by 4% in both 2025 and 2026. These trends reinforce Microsoft’s leadership in AI and support Jefferies’ $600 price target for the stock. Overall, Thrill estimates that Microsoft 365 Copilot could generate about $5.1 billion in revenue in 2025 and $11.4 billion in 2026, even using cautious assumptions that only 10% to 17% of eligible Microsoft 365 users will adopt it.
From a valuation perspective, Thrill noted that Microsoft shares are trading at 31 times their projected 2026 earnings. He believes the stock offers strong upside potential, especially if AI-driven revenue continues to grow over the next three years.
Is Microsoft a Good Stock to Buy Now?
According to TipRanks, MSFT stock has received a Strong Buy consensus rating, with 31 Buys and three Holds assigned in the last three months. The average Microsoft stock price target is $535.87, suggesting a potential upside of 6% from the current level.
