Microsoft price target lowered to $510 from $525 at UBS

UBS lowered the firm’s price target on Microsoft (MSFT) to $510 from $525 and keeps a Buy rating on the shares. Microsoft’s quarter was weaker than expected, with the company pulling its guidance for a second half Azure acceleration, citing sales execution, the analyst tells investors in a research note. While the improvement in the fiscal 2025 margin guidance as well as the guide for capex growth to moderate in fiscal 2026 will help, three straight quarters of an Azure disappointment with a different explanation each time undermines confidence in the growth outlook, the firm argues.