Jefferies analysts reiterated a Buy rating and a Franchise Pick designation for Microsoft (NASDAQ:MSFT) after conducting a detailed analysis of Microsoft Copilot 365.
Microsoft is set to make M365 Copilot generally available on November 1, and it has already garnered significant interest, with over 10,000 customers ready to adopt it.
The firm’s analysis suggests that M365 Copilot could potentially drive around $3 billion in revenue in fiscal 2024 and over $19 billion in 2025, representing an approximately 8% upside to their 2025 total revenue estimate. This assumes conservative adoption rates and no discounts.
Furthermore, the general availability of Windows Copilot on September 26 could have a positive impact on Bing Ad revenue, as Windows Copilot users in the preview have reported seeing Bing Ads in their search results.