RBC Capital and Jefferies Keep Bullish Ratings on Microsoft (MSFT)

Group 1 - Microsoft Corporation (NASDAQ:MSFT) is recognized as one of the 10 Best AI Stocks to Buy for the Next 10 Years, with RBC Capital reiterating an Outperform rating and a price target of $640 [1] - Jefferies also maintains a Buy rating on Microsoft with a price target of $675, emphasizing the company's end-to-end platform that integrates Azure and Microsoft 365 (M365) to enhance enterprise AI spending [2][3] - The total addressable market for M365 is expanding due to AI, with Jefferies noting that AI margins are improving more rapidly than cloud margins did at a similar stage [3] Group 2 - Microsoft’s model-agnostic strategy allows it to profit from various AI models, focusing on controlling the platform for deployment, governance, and monetization [3] - The full-stack AI solution offered by Microsoft, which includes governance features, is appealing to chief information officers [4] - Microsoft is currently trading at approximately 21 times its expected EPS for fiscal year 2027, which is below its 10-year average of 23.5 times [4]