Microsoft (MSFT) PT Lowered to $285 at Rosenblatt

Rosenblatt analyst Blair Abernethy lowered the price target on Microsoft (NASDAQ: MSFT) to $285.00 (from $300.00) while maintaining a Buy rating following earnings.

The analyst commented, "After market on Tuesday, Microsoft reported Q1 results, with revenue of $50.1b, ~1% above consensus and our estimates. Microsoft Cloud revenue was $25b (51% of total revenue vs ~46% LY) growing 34% y-o-y (in CC) driven by Azure and other cloud services growth of 42% (vs 43% guidance in CC). Looking forward, while Microsoft faces headwinds from weak PC sales and slower advertising, it still expects double-digit (in CC) revenue growth in FY23 (but now with a 5% forex headwind). For Q2, Microsoft provided revenue guidance of up ~2% y-o-y, but was ~6% below pre-quarter Consensus. With this note, we are trimming our FY23-24 revenue forecast by ~3%, lowering our target price to $285 (was $300) and maintaining our Buy rating."

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