Microsoft downgraded to Neutral from Buy at UBS

UBS analyst Karl Keirstead downgraded Microsoft to Neutral from Buy with a price target of $250, down from $300. The analyst cites a weaker round of field checks on the cloud providers including Azure, a view that Office seat growth is likely to moderate in 2023, and a stock multiple that "already feels fair, not cheap" for the downgrade. Azure could see a "steep growth deceleration" that is worse than expected due to maturation, not just the tough macro backdrop, Keirstead tells investors in a research note. In addition, Office 325 is vulnerable to a slowdown in 2023, adds the analyst. He believes Microsoft shares already reflect its "defensive premium."