Microsoft price target lowered to $480 from $510 at BofA

BofA lowered the firm’s price target on Microsoft (MSFT) to $480 from $510 and keeps a Buy rating on the shares. A round of calls with nearly a dozen key system integration partners suggest that that deal activity leaned more “in line” during fiscal Q3, says the analyst, who expects Q3 revenue to be largely in line with the firm’s estimate for $68.2B, or 10.3% year-over-year reported growth. The focus this quarter is likely to be on Azure guidance and capex and while the firm did not pick up any indication of materially slowing consumption or pipeline growth in the channel, it is lowering its Q4 Azure growth view to 30.5% constant currency from 31.5% given the added macro uncertainty.