BMO Capital analyst Keith Bachman lowered the firm’s price target on Microsoft (MSFT) to $575 from $625 and keeps an Outperform rating on the shares. The December quarter Azure growth of 38% y/y CC and a March quarter guide of 37%-38% y/y were slightly disappointing, and the firm believes buyside likely expected 1-2pts of more upside for each, the analyst tells investors in a research note. Higher cash capex is limiting free cash flow growth, and coupled with disappointing Azure growth, this made for a bad combination this quarter, BMO added.
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