Melius Upgrades Microsoft to Buy With $665 Target on Enterprise AI Security Demand

Microsoft shares advanced after Melius Research upgraded the stock from Hold to Buy with a new price target of $665. The stock traded up 1.75% to $526.35 after earlier reaching $527.29. Melius cited surging enterprise demand for artificial intelligence security, compliance, and governance, positioning Microsoft as the trusted provider. The bullish stance follows Microsoft's fiscal fourth-quarter Azure revenue growth of 43% and a contracted commercial backlog of $678 billion. Melius initiated a fiscal 2029 earnings estimate of $30.77 per share and projects Azure growth to exceed 50% by fiscal 2027.