Back to today’s briefing

Story perspectives

Bank of America Sets $500 Target for Microsoft, Expects 15% Revenue Growth

3/26/2026

50 11 Full Breakdown

Summary

Story summary

Bank of America reinstated coverage on Microsoft (MSFT) with a Buy rating and a $500 price target.
Bank of America expects Microsoft revenue to rise 15-17% over the next three years, driven by a 24-28% increase in Intelligent Cloud.
Bank of America cautions that capacity constraints may limit cash flow and future dividend increases.
Microsoft trades at about 18 times the expected 2027 earnings per share of $20.50.

1 of 1

Story summary

Bank of America reinstated coverage on Microsoft (MSFT) with a Buy rating and a $500 price target.
Bank of America expects Microsoft revenue to rise 15-17% over the next three years, driven by a 24-28% increase in Intelligent Cloud.
Bank of America cautions that capacity constraints may limit cash flow and future dividend increases.
Microsoft trades at about 18 times the expected 2027 earnings per share of $20.50.