Deutsche Bank maintains Microsoft's buy rating with a target price of $550

Deutsche Bank released a research report stating that the market is overly concerned about Microsoft's AI investment, maintaining Microsoft's buy rating and target price of $550. Deutsche Bank expects Microsoft's fourth quarter revenue to be $87.4 billion, with non GAAP earnings per share of $4.17. Azure is expected to grow at a fixed exchange rate of 40% to 41%, while Microsoft's 365 Business Cloud revenue is expected to increase by 15% to 16%. Copilot's paid seats may exceed $25 million by the end of the year.