Bank of America Assigns $500 Price Target on Microsoft, Forecasts 15–17% Growth
Bank of America reinstated coverage of Microsoft with a Buy rating and a $500 price target, implying roughly 40% upside based on a 24x CY27 P/E multiple and 15–17% projected annual revenue growth. It forecasts Intelligent Cloud expansion of 24–28% as AI workloads scale and expects operating margins to stay above 46%.
1. Bank of America Reinstates Microsoft Coverage
Bank of America this week resumed coverage of Microsoft with a Buy rating and set a $500 price target, reflecting a projected 15–17% annual revenue growth rate over the next three years. The recommendation is underpinned by a 24x CY27 P/E multiple that values Microsoft’s AI-driven backlog and OpenAI partnership, suggesting approximately 40% upside. Analysts highlight Intelligent Cloud as a key growth driver, forecasting expansion of 24–28% as enterprise AI workloads accelerate, while expecting operating margins to remain above 46% despite rising capex.