Citi Cuts Microsoft's Price Target By 9.3% - Read Why - Microsoft (NASDAQ:MSFT)

Citigroup analyst Tyler Radke maintained Microsoft Corp MSFT with a Buy and cut the price target from $364 to $330 (30% upside).
The days of clear-cut beats or raises for MSFT may soon be a distant memory, but Radke maintained a Buy rating in FQ4 results.
On the one hand, Radke's checks and survey work suggest a robust demand environment, particularly in Azure/Commercial cloud and O365.
Offsetting the strength in MSFT's marquee franchises were significant incremental FX pressure and weakening PC demand.
While he expects solid results and a reiteration of double-digit cc revenue and operating income growth for FY23, he cut the estimates by ~4% to reflect FX/PC headwinds and modestly slower growth in other key businesses, given moderating IT spending into 2H of this year.
His FY23 estimates were below the street but likely in line with buy-side expectations.
He continues to be the buyer of shares with the stock off ~24% YTD and a lucrative combination of compelling relative valuation, business model resiliency, and outsized revenue growth vs. S&P500 companies.
Price Action: MSFT shares traded higher by 0.38% at $255.22 on the last check Tuesday.

Citi Cuts Microsoft's Price Target By 9.3% - Read Why