- Microsoft's (NASDAQ:MSFT) outperformance of late is concerning, says analyst Kash Rangan downgrading to Underperform with $47 price target; especially in an environment of a slowing Win Pro cycle, an "elongated" Consumer Office 365 transition, the challenge of margin leverage, and sell-side exuberance over one-time financial moves.
- Under a "best case" scenario of a $30B buyback and $4B in operating expense cuts, Microsoft could run out of room for earnings growth, leading to a re-rating of the P/E ratio.
- Shares -1.3% premarket