Microsoft finds the going rough as UBS cuts rating on Azure issues
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Microsoft (NASDAQ:MSFT) shares fell more than 4% Wednesday after UBS analyst Karl Keirstead kicked off 2023 by cutting his rating on the software giant's stock due to concerns about weakness in the company's cloud business.
Keirstead took down his rating on Microsoft (MSFT) to neutral from buy, on what he said was "the back of a weaker round of field checks on the cloud [software] providers, including [Microsoft] Azure." Keirstead added that there is evidence that Microsoft Office growth is likely to "moderate" this year.
But, it was concerns about Microsoft Azure that stood out for Keirstead. 
"Azure is entering a steep growth deceleration that could prove worse [in Microsoft's 2023 and 2024 fiscal year] than investors are modeling," said Keirstead, who added that the market for Azure is close to reaching "maturation."
Along with cutting his rating, Keirstead also lowered his price target on Microsoft's (MSFT) stock to $250 a share from $300.
Wall Street analysts currently have a consensus rating of strong buy on Microsoft's (MSFT) stock, while Seeking Alpha authors give the shares a buy rating. Seeking Alpha's Quant System, which historically outperforms the stock market, gives Microsoft (MSFT) stock a more-modest hold rating.