Microsoft price target lowered to $495 from $500 at BMO Capital

BMO Capital lowered the firm’s price target on Microsoft (MSFT) to $495 from $500 and keeps an Outperform rating on the shares after its Q1 results. Azure growth for the September quarter was a point above guidance, but investors will be modestly disappointed with the Azure December quarter revenue guide, even though supply/demand imbalance is impacting the December quarter more so than the September one, the analyst tells investors in a research note. BMO adds however that the medium- and longer-term catalysts for Microsoft include accelerating Azure growth, greater Microsoft 365 ARPU growth due to richer mix, and lower capex spend.