** Microsoft MSFT.O shares rise 0.4% to $492.1 premarket, after Wedbush Securities and Wells Fargo raise PTs
** Wedbush raises PT to $600 from $515, Wells Fargo increases it to $585 from $565; both brokerages bullish on adoption of AI services such as Azure, Copilot 365
** Wells Fargo expects Copilot revenue contribution to ramp up sharply in FY26, which starts in July, and estimates co can over time generate $12 bln in annual recurring revenue from the service, even with just 10% customer penetration
** Brokerage expects MSFT to pivot to new metric offering more detail on Copilot adoption, growth; maintains "overweight" rating
** Wedbush says over 70% of MSFT customer base will use AI tools in next three years
** AI may ultimately add $25 bln to MSFT's revenue trajectory by FY26, Wedbush says; maintains "outperform" rating
** Investors have been concerned about Copilot adoption; Gartner said on Wednesday over 40% of agentic AI projects will be scrapped by 2027
** 55 of 62 brokerages rate stock "buy" or higher, 7 "hold"; their median PT is $500
** Up to last close, stock up 16% YTD
(Reporting by Aditya Soni)
((Aditya.Soni@thomsonreuters.com;))
