[UBS: Microsoft Earnings May Face 'High Spending, Low Growth' Dilemma, Target Price Lowered to $480] BlockBeats News, July 28, UBS analysts pointed out that Microsoft's (MSFT) recent stock price pullback has partially mitigated risks for its fourth-quarter performance, leaving limited downside potential. However, they still maintain a 'Buy' rating for Microsoft while lowering its target price from $510 to $480. The rationale is that Microsoft may raise its capital expenditure outlook while maintaining, rather than increasing, Azure's growth guidance—a combination of high spending coupled with limited revenue growth expectations that seems less favored by the market. Beyond discussions on capital expenditure and return on investment, Microsoft may also face multiple pressures: its exposure to OpenAI risks, potential substitution risks from open-source models, and skepticism surrounding its flagship productivity software business. The analysts wrote: 'In summary, we maintain the 'Buy' rating but adopt a more balanced stance on this earnings report.'