- Citi sees Microsoft Corp (NASDAQ:MSFT) likely continuing its strong growth rates generated in the past several quarters.
- However, Microsoft's "lower commercial PC numbers" and the decline in earnings multiples for software stocks led to the target price cut to $376 from $407. The price target implies an upside of 21%.
- Meanwhile, analyst Tyler Radke reiterated the Buy rating on the shares.
- Radke expects overall growth durability to show "positive partner takeaways and reseller survey results," particularly in certain EA renewals and Office 365 and Dynamics.
- In contrast, Azure revenue growth could moderate amid tougher comps and seasonally weaker bookings.
- Price Action: MSFT shares traded higher by 2.09% at $309.77 on the last check Thursday.
