Microsoft price target lowered to $497 from $500 at Citi

Citi lowered the firm’s price target on Microsoft (MSFT) to $497 from $500 and keeps a Buy rating on the shares. The firm says Microsoft shares have lagged over the last quarter as “investors struggle to rationalize enormous ramps in capex, amidst underwhelming” Azure growth and slowing earnings growth. The firm sees a “mixed set-up” heading into the first Q1 report. However, Citi’s reseller and CIO survey generally showed stability, and it believes Q2 can slightly surprise to the upside. The firm is a buyer of the pullback in shares as it expects investor sentiment to turn more positive post the quarter ahead of a second half reacceleration in Azure growth and earnings growth.