Microsoft price target lowered to $540 from $610 at TD Cowen

TD Cowen analyst Derrick Wood lowered the firm’s price target on Microsoft (MSFT) to $540 from $610 and keeps a Buy rating on the shares. The firm previewed its Q3 where they expect Azure upside to be limited and growth to remain steady given GPU capacity priorities. Cowen suspects much is going towards internal R&D for frontier-like model building but they do look for modest unlock in M365.