I am initiating Microsoft with a Buy rating and a $611 price target, implying 14% upside. I believe Azure expansion, Microsoft 365 Copilot adoption, and enterprise AI applications can drive fiscal 2028 revenue to $437 billion and EPS to $22.32. MSFT's FWD non-GAAP PEG of 1.70x represents a 25% discount to its 5-year average of 2.28x, suggesting further valuation upside as AI monetization improves.
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