Wells sees Security Copilot adding incremental lever to Microsoft Azure growth

Wells Fargo notes that Microsoft has announced Security Copilot will be generally available on April 1st, which the firm expects to add an incremental lever to Azure growth for Q4 2024 and fiscal year 2025. Security Copilot will feature a consumption-based pricing model, charging customers based on the number of “security compute units” used. Wells expects the pricing will help encourage adoption of the product, similar to pricing models for many of its other usage-based security and infrastructure services. The firm has an Overweight rating on the shares with a price target of $460.