Microsoft shares slipped 2% to $234.46 in premarket trade as UBS downgraded the tech giant to neutral from buy and lowered its price target to $250 from $300. Analysts led by Karl Keirstead said Microsoft’s growth engine, Azure, is entering a steep growth deceleration which may be due to maturation and not just a tough macro environment. Its Office 365 business also is vulnerable to a slowdown as the installed base throttles back on headcount growth. At 24.5 times estimated 2023 free cash flow, Microsoft already has a “defensive premium,” the UBS team added.
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