Deutsche Bank Maintains Microsoft Buy Rating at $550, Sees Azure Growth of 40-41%

MSFT-0.55%
According to Deutsche Bank's latest research note, market concerns about Microsoft's capital expenditure surge, AI investment returns, and OpenAI order concentration are significantly overblown; the stock offers attractive valuation. The bank maintains a "buy" rating with a $550 price target. Deutsche Bank expects Microsoft's fourth quarter revenue to reach $87.4 billion with 14.3% year-over-year growth. Azure growth on a constant currency basis is projected at 40-41%, driven by enterprise cloud migration and AI compute demand. Microsoft 365 commercial cloud revenue is forecast to grow 15-16%, while paid Copilot seats may exceed 25 million by year-end.
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