BMO downgrades Microsoft post results on Azure uncertainty

BMO Capital analyst Keith Bachman downgraded Microsoft to Market Perform from Outperform with a price target of $265, down from $267, following last night’s results. Until Azure growth stabilizes, the shares are likely to be range bound, the analyst tells investors in a research note. The firm believes there is too much remaining uncertainty on Azure, which represents about 31% of BMO’s revenue estimates. Second, it does not find Microsoft’s current valuation "overly compelling."