Morgan Stanley reiterated an Overweight rating and $625 price target on Microsoft (MSFT), saying the recent agreement with OpenAI clears the “number one” overhang on the stock. Reaffirming the revenue share agreement and API exclusivity should soother near-term tactical concerns, while a new $250B contract puts Microsoft on equal footing with Oracle (ORCL) as a core OpenAI supplier, the analyst tells investors in a research note. The firm added that extending IP rights, which Microsoft leverages across the business, may be an underappreciated positive as well.
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