Two analysts remained bullish despite slashing their price targets on Microsoft Corp.
Citigroup analyst Tyler Radke maintained Microsoft with a Buy and lowered the price target from $386 to $355.
Amidst rising investor concerns around the sustainability of robust software demand and valuation multiples, Citi analyst
Tyler Radke expects MSFT’s results to demonstrate that commercial demand remains strong.
While the March/FQ3 saw weaker PC data and potential incremental FX headwinds, Radke saw strength in MSFT’s key commercial selling areas, including O365 and Azure, based on the results of Radke’s proprietary reseller survey and intra-Q channel work.
Radke expects that Q3 results should continue to show the durability of MSFT’s double-digit growth profile.
Wells Fargo analyst Michael Turrin maintained Microsoft with an Overweight and lowered the price target from $425 to $400.
Microsoft’s Productivity & Business Processes segment has quietly delivered an uptick in growth across each primary business, benefiting from one of the most significant shifts in the history of business users, raising doubts regarding a possible slowdown.
Turrin saw the NT optics around second-half growth rates, which were likely to moderate.
He saw Microsoft’s dominant position continue to provide a broad base for natural LT cross-sell opportunities somewhat under-appreciated.
He continued to see MSFT shares as the best way to play the broad secular LT shift towards digital, with platform positioning esp. advantageous in the current environment, and take a closer look at Office, LinkedIn, and Dynamics.
