Microsoft price target raised to $415 from $335 at Morgan Stanley

Morgan Stanley raised the firm’s price target on Microsoft to $415 from $335 and keeps an Overweight rating on the shares. Generative artificial intelligence looks to significantly expand the scope of business processes able to be automated by software, and Microsoft stands best positioned in software to monetize that expansion, the analyst tells investors in a research note. The firm says Microsoft’s valuation is “still reasonable” at current share levels, making the stock its Top Pick in large cap software. Several initial trend-lines indicate Microsoft stands best positioned in enterprise software to benefit from generative AI, writes Morgan Stanley. The firm raised its forward year estimates for Microsoft assuming minimal penetration of what it estimates can be up to a $90B incremental opportunity for the company in fiscal 2025.