Accelerating Copilot Adoption and New Office 365 Bundles Support Stronger Growth Outlook for Microsoft

In a report released today, Derrick Wood from TD Cowen maintained a Buy rating on Microsoft, with a price target of $540.00.

Derrick Wood has given his Buy rating due to a combination of factors pointing to accelerating growth in Microsoft’s Office 365 Commercial Cloud, driven primarily by stronger expected uptake of Copilot. His updated work, informed by a large survey of U.S. decision-makers, shows rising intentions to upgrade Microsoft 365 suites and to adopt AI agents, with most respondents already reporting clear return on investment and high satisfaction with Copilot.

He also highlights a new product and pricing cycle, including the upcoming E7 bundle and the Copilot Cowork offering, which should both support higher paid Copilot penetration and materially lift average revenue per user over time. With Microsoft reallocating GPU capacity to first‑party Copilot services, emphasizing paid adoption, and his model now assuming faster Copilot penetration and a higher long‑term Office 365 Commercial Cloud revenue CAGR, Wood sees a more attractive growth and monetization trajectory that justifies a Buy rating on MSFT.

Wood covers the Technology sector, focusing on stocks such as SAP AG, Adobe, and Microsoft. According to TipRanks, Wood has an average return of -0.9% and a 42.34% success rate on recommended stocks.

In another report released today, Jefferies also maintained a Buy rating on the stock with a $675.00 price target.