Microsoft price target raised to $500 from $450 at RBC Capital

RBC Capital raised the firm’s price target on Microsoft to $500 from $450 and keeps an Outperform rating on the shares after hosting the company’s Directors of Investor Relations James Ambrose and Josh Elvidge in Canada. The discussion has left the fim more positive on the company’s runway of growth and leadership in AI, the analyst tells investors in a research note, adding that while Microsoft’s CapEx will likely continue to ramp and impact margins, the company is following demand signals and is simultaneously focused on bringing the cost curve down.