Shares of Microsoft (NASDAQ:MSFT) are down in today’s trading session. This can be attributed to an analyst downgrade from UBS (NYSE:UBS). Analysts led by Karl Keirstead changed his rating from Buy to Hold while assigning a new price target of $250. For reference, the previous price target was $300.
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UBS believes that Microsoft Azure might not grow as fast as investors think, citing difficult macroeconomic conditions and a maturing market as the reasons. This would justify today’s selloff if UBS’ prediction is correct because Microsoft’s cloud computing business is its biggest growth driver.
Nevertheless, Wall Street analysts are very bullish on MSFT stock with a Strong Buy rating. In addition, the consensus price target of $289.41 implies 26.72% upside potential, as indicated by the graphic above.
