Microsoft shares slip as UBS flags Azure and Office worries in downgrade

Microsoft shares slip as UBS flags Azure and Office worries in downgrade


Microsoft shares slipped 2% to $234.46 in premarket trade as UBS downgraded the tech giant to neutral from buy and lowered its price target to $250 from $300. Analysts led by Karl Keirstead said Microsoft’s growth engine, Azure, is entering a steep growth deceleration which may be due to maturation and not just a tough macro environment. Its Office 365 business also is vulnerable to a slowdown as the installed base throttles back on headcount growth. At 24.5 times estimated 2023 free cash flow, Microsoft already has a “defensive premium,” the UBS team added.

-Steve Goldstein

 

(END) Dow Jones Newswires

01-04-23 0553ET

Copyright (c) 2023 Dow Jones & Company, Inc.



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Author: Shirley