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Microsoft (MSFT) faces a murky outlook because of slowing sales of Windows Professional licenses for business PCs and “elongated” consumer adoption of Office 365, Bank of America analyst Kash Rangan said Tuesday. In a research note, Rangan downgraded Microsoft stock to underperform from neutral with a price target of 47. Microsoft shares were down 2% to below 46 in afternoon trading on the stock market today. Rangan said Microsoft’s (MSFT) recent outperformance relative to the S&P 500 is “cause of concern,” especially given the challenges Microsoft is facing in its core businesses of Windows and Office. The winding down of the current Windows Pro cycle will affect $13 billion in high-margin business for the company, including Windows and business Office sales, he said. Win Pro revenue growth has been declining in recent quarters, he said. Investors shouldn’t get excited about Microsoft’s consumer Office 365 cloud transition, Rangan said. It would take… Scalper1 News
Scalper1 News