Microsoft price target raised to $540 from $500 at Piper Sandler

Piper Sandler raised the firm’s price target on Microsoft (MSFT) to $540 from $500 and keeps an Overweight rating on the shares. The firm notes Q3 Azure growth came in at 39% year-over-year constant currency, a stronger beat than Q2 and a modest acceleration on a tougher comparison. The real standout, however, is the Q4 Azure guidance midpoint of 39.5% year-over-year coupled with a modest acceleration slated for the second half of 2026. Piper views the Azure guide as impressive given Azure’s size/scale.