Microsoft price target lowered to $620 from $640 at Mizuho

Mizuho lowered the firm’s price target on Microsoft (MSFT) to $620 from $640 and keeps an Outperform rating on the shares. The firm adjusted targets in large-cap software as part of a Q4 earnings preview. Channel checks were solid overall, with public cloud data points were “generally good” and AI adoption “very strong,” the analyst tells investors in a research note. However, Mizuho says some of its checks noted more moderate budget flush activity than usual. In addition, growing investor concerns about AI disruption :continue to decimate many software company multiples,” the firm contends. It cites recent multiple compression for the target cuts.