UBS analyst Karl Keirstead lowered the firm’s growth estimates for Microsoft’s Azure cloud segment, saying that recent trends have continued into Q1. The analyst, who made no change to the firm’s Neutral rating or $275 price target, feels the Street’s estimates for Azure are too high and concludes that customer efforts to optimize/trim their cloud spend will be deeper and last longer than most think based on calls with AWS/Azure customers and partners. UBS contends that the potential for a worse-than-Street-consensus Azure growth outlook creates some downside risk into the print.
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