Scotiabank starts Microsoft at Outperform at outset of ‘paradigm-shifting year’

Scotiabank initiated coverage of Microsoft (MSFT) with an Outperform rating and $470 price target The firm cites the company’s “position as a leading horseman of the AI revolution,” which the analyst thinks will drive sustainable fundamental growth and account for nearly 60% of incremental revenue in FY27. Scotia expects 2025 will be “a paradigm-shifting year during which customer investments accelerate in AI on Azure and Microsoft 365 Copilot,” the analyst tells investors.