Microsoft Corporation (NASDAQ:MSFT) reported its Q42026 results on July 29, beating top and bottom lines driven by robust cloud and infrastructure demand. On September 1, BofA Securities **** yst Tal Liani raised the price target on the stock to $600.00 (from $500.00) while maintaining a Buy rating, **** erting that the tech giant's massive spending has begun translating into stronger growth.
The firm increased its price target based on 28x their CY27E P/E versus 24x previously, a reflection that Microsoft's massive AI spending is now reaping results investors have been looking for.
For the fiscal year ended June 30, the tech giant spent nearly $116 billion on capital expenditures, a 79.62% jump driven by cloud and AI infrastructure. Free cash flow, as a result, fell 6.46% to $66.987 billion as the heavy investments weighed on near-term cash.
BofA's willingness to apply a higher multiple is a testament that the tech giant's spending is now showing up as accelerating revenue.
Pixabay/Public Domain
#spending
The firm increased its price target based on 28x their CY27E P/E versus 24x previously, a reflection that Microsoft's massive AI spending is now reaping results investors have been looking for.
For the fiscal year ended June 30, the tech giant spent nearly $116 billion on capital expenditures, a 79.62% jump driven by cloud and AI infrastructure. Free cash flow, as a result, fell 6.46% to $66.987 billion as the heavy investments weighed on near-term cash.
BofA's willingness to apply a higher multiple is a testament that the tech giant's spending is now showing up as accelerating revenue.
Pixabay/Public Domain
#spending
2 days ago
