Azure just crossed a milestone that resets how analysts should value Microsoft, yet the stock sits below where it traded a year ago. The reason behind that disconnect points to an opportunity most investors are overlooking.
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Microsoft (NASDAQ:MSFT | MSFT Price Prediction) just closed a record fiscal year in which Azure surpassed $100 billion in annual revenue and Microsoft 365 Copilot passed 30 million paid seats. Yet shares are still down 2.3% over the past year, trading at $498.51. Our proprietary model says that gap is the opportunity.
The 24/7 Wall St. price target for Microsoft is $640.92 over the next 12 months, implying 28.7% upside. Our recommendation is buy. A $678 billion RPO backlog gives multi-year visibility that the current 27x multiple does not fully price in.
