Microsoft initiated with bullish view at Truist, here’s why

Truist initiated coverage of Microsoft with a Buy rating and three-year price target of $600. The analyst believes Microsoft can grow revenue and free cash flow in the mid-teens, driven by upside to consensus numbers in artificial intelligence, Azure, and Copilot, “which could propel shares to compounding strong gains.” In a year when shares of the software behemoth have risen by over 50%, many investors will be wondering where the upside potential is from here, the analyst tells investors in a research note. The firm says Microsoft’s AI opportunity will likely serve as a catalyst to accelerate both its top and bottom-line growth. It believes the ultimate opportunity could be in the tens of billions of dollars for the company.