Deutsche Bank Maintains Buy Rating on Microsoft, Sets $550 Price Target

Deutsche Bank said concerns over Microsoft’s surging capital spending, AI return on investment, and customer concentration tied to OpenAI orders have become excessive, and that the stock’s current valuation is attractive. According to ChainCatcher, the bank maintained its Buy rating and $550 price target for Microsoft. Deutsche Bank expects Microsoft’s fiscal fourth-quarter revenue, which corresponds to the second quarter of the calendar year, to reach $87.4 billion, up 14.3% year over year, with non-GAAP earnings per share of $4.17. Azure revenue is projected to grow 40% to 41% at constant currency, supported by enterprise cloud migration, AI compute demand, and added data center capacity. Microsoft 365 commercial cloud revenue is expected to rise 15% to 16%, while Copilot paid seats could exceed 25 million by year-end.