Microsoft price target lowered to $505 from $575 at BMO Capital

BMO Capital lowered the firm’s price target on Microsoft (MSFT) to $505 from $575 and keeps an Outperform rating on the shares ahead of its Q1 results. With ongoing investor concern for software and results that will likely have modest upside, the firm does not think Microsoft March quarter report will serve as a “liberating event”, also noting that FY27 consensus capex estimates may be “too low”, the analyst tells investors in a research note. BMO further attributes its price target cut to compression in software evaluations.