Microsoft price target lowered to $530 from $540 at Morgan Stanley

Morgan Stanley analyst Keith Weiss lowered the firm’s price target on Microsoft (MSFT) to $530 from $540 and keeps an Overweight rating on the shares. Commercial bookings growth of 75% year-over-year in constant currency accelerated well beyond expectations, though Azure growth of 31% in constant currency in Q2 came in 1% point below expectations, the analyst tells investors. While Azure was “disappointing,” strength in the GenAI ramp and moderating capex growth should support accelerating FY26 free cash flow growth, the analyst added.