Morgan Stanley supports Microsoft Corporation (MSFT.US): 365 Frontier suite boosts AI agents, target price up to $650.

Morgan Stanley stated that the newly released version of the Microsoft 365 Frontier suite by Microsoft Corporation (MSFT.US) should drive the development of the tech giant's agentic AI products and enhance its AI monetization capability. Analysts have given Microsoft Corporation a "hold" rating with a target price of $650. Analyst Keith Weiss wrote in a report to clients, "While Microsoft Corporation's entire platform (not just generative AI) is showing strong momentum and continues to actively integrate AI into its product portfolio, Microsoft 365 Copilot and the (security-driven) E5 upgrades remain key drivers of average revenue per user growth, with the new Agent 365 set to be another potential growth point in the future." "These drivers align closely with our latest CIO survey results in several ways: 1) willingness to increase O365 spending; 2) a clear trend towards higher-tier O365 subscriptions; 3) increased willingness of CIOs to use Microsoft Corporation's generative AI products; and 4) increased penetration of M365 Copilot."