Wall Street analysts are becoming increasingly bullish on Microsoft stock ahead of the software giant's June-quarter earnings report.
On Friday, BofA Securities and Deutsche Bank reiterated their buy ratings on Microsoft stock and raised their price targets. Earlier this week, Microsoft scored price-target hikes from Cantor Fitzgerald, Mizuho Securities, TD Cowen and Wells Fargo, all of which have buy ratings on it.
On the stock market today, Microsoft dipped 0.3% to close at 510.05. Earlier in the session, Microsoft stock notched a record high of 514.64.
Deutsche Bank analyst Brad Zelnick said he expects Microsoft to display some "AI swagger" when it posts fiscal fourth-quarter results on July 30. That would include a strong performance from its Azure cloud infrastructure business and Copilot AI services, he said.
Zelnick upped his price target on Microsoft stock to 550 from 500.
BofA analyst Brad Sills raised his price target on Microsoft to 585 from 515.
Partner checks indicate strong Azure business in the June quarter, Sills said.
"Azure strength was driven by steady cloud migrations and strength in security and data analytics," he said. "We see potential for Azure growth of 35.5% year over year in constant currency vs. our base (case) for 34.2%."
Microsoft is "positioned as a clear beneficiary in the AI cycle," TD Cowen analyst Derrick Wood said in a report Wednesday. He increased his price target on Microsoft stock to 580 from 540.
Microsoft stock is on at least two IBD lists: Long-Term Leaders and Tech Leaders.
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