Microsoft has emerged as a top megacap stock that investors should consider as the year draws to a close, according to Piper Sandler analyst Brent Bracelin. With the upcoming launch of its Copilot artificial-intelligence-based assistance software, Microsoft is gaining momentum in the market.
Bracelin expressed his highest conviction in Microsoft and gave it an Overweight rating. He set a price target of $400 for the stock, which implies a 22% increase from its previous closing price.
The release of Microsoft 365 Copilot, scheduled for November 1, is a key factor behind Bracelin’s optimistic outlook. This software, designed to work seamlessly with Bing search engine and Office software suite, is set to be available to enterprise customers on a broader scale.
Previously, M365 Copilot was accessible to only around 600 enterprises during a paid preview. However, with the formal general availability (GA) release, the scope of accessibility will expand significantly.
The growing interest from companies is evident from the surge in monthly unique visitors to adoption.microsoft.com, Microsoft’s information page for businesses transitioning to Copilot and other products. In September, the number of unique visitors increased by a staggering 181% compared to August.
Several analysts also share Bracelin’s positive sentiment towards Microsoft. Out of the 53 surveyed by FactSet, 46 analysts rate it as a Buy, while seven suggest holding onto the stock.
In early trading on Monday, Microsoft’s shares were already up by 1.3% at $332.12. With this gain, the stock has recorded an impressive 39% increase this year.