Piper Sandler Raises Microsoft Price Target to $610 on AI and Software Momentum

Piper Sandler raised its price target on Microsoft Corporation to $610 from $550 while reiterating an Overweight rating. Analyst Billy Fitzsimmons cited accelerated momentum for enterprise Copilot solutions and the E7 rollout of M365 Commercial. The brokerage estimates Microsoft maintains roughly 460 million total commercial seats, including 118 million across E3, E5, and E7 tiers, generating about $27 billion in E5 annual recurring revenue. Additionally, Piper Sandler projects that every 10% user migration to the $99-per-month E7 SKU will produce $2 billion in incremental revenue, while Copilot is on track to hit $2 billion in annualized revenue by fiscal 2028.