Microsoft: Piper Sandler recommends a stock with great potential at the end of the year

Microsoft: Piper Sandler recommends a stock with great potential at the end of the year

Piper Sandler calls Microsoft the "most compelling" large-cap stock to end the year. The financial services provider's analysts point to Microsoft's first-mover advantage in the field of artificial intelligence. Microsoft launched its chatbot ChatGPT this year and expanded its plans around ChatGPT, such as partnering with automakers to test AI technology in vehicles and integrating with Microsoft Office applications.

Another catalyst for Microsoft is the upcoming M365 Copilot, an AI complement to key productivity applications like Word and Excel. Piper Sandler is optimistic, noting that traffic to the Copilot adoption website has increased, indicating that IT administrators are preparing to deploy M365 Copilot.

Analysts see multiple growth levers for revenue and earnings per share over the next three to five years. Microsoft is investing in AI services to meet rising demand and expects higher revenue in the second half of fiscal 2024.

Microsoft shares are up 38 percent this year, while the S&P 500 is up just 12 percent. Piper Sandler sees further upside potential for the stock and gives a price target of $400, representing a potential upside of approximately 21 percent from the current closing price. Analysts' average price targets are a potential upside of 19.5 percent.

Source: According to a report by www.wallstreet-online.de