BMO Capital lowered the firm’s price target on Microsoft (MSFT) to $470 from $490 and keeps an Outperform rating on the shares after speaking with two cloud experts. The firm believes Azure’s legacy cloud business has slowed and reduced Azure growth estimates for the next few quarters and for fiscal 2026. Based on expert feedback, there has been a slowdown in Azure’s core legacy cloud businesses due to the weaker economy, the analyst tells investors in a research note. BMO thinks slower capex intensity in fiscal 2026 “is one catalyst that could help” Microsoft shares.
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