Microsoft’s stock price target cut at Citi due to weaker PC growth

Citi analyst Tyler Radke cut the price target on Microsoft (NASDAQ:) to $355.00 per share from $386.00 to reflect weaker PC growth and Nuance integration.

Ahead of Microsoft’s third-quarter earnings report, Citi’s reseller survey provided constructive signals about MSFT’s business operations.

“Resellers expect NTM growth to accelerate by 5 points versus LTM (also an increase from last quarter). This despite a slight negative impact from the conflict in Ukraine experienced by 38% of resellers We also highlight the positive growth expectations of EA’s renewal for 2022, as well as upselling momentum towards next-level O365. This is driven by Teams collaboration, but also by a significant increase in telephony /Teams voice, which is consistent with our takeaways from Enterprise Connect In terms of hitting quotas, 77% expect to hit the accelerator, which we consider solid (and in line with most our previous surveys), although this represents a slight drop from last Q,” Radke said in a client note.

Additionally, the data points to continued Azure strength with “perhaps the most positive takeaways we’ve seen in the ~6 Qs we’ve conducted in the survey.”

Microsoft stock price closed at $280.52 yesterday.

By Senad Karaahmetovic

Karen J. Nelson