China exposure prompts Wedbush to cut Microsoft PT amid tariff uncertainty

Microsoft MSFT.O is down 1.43% in premarket trading

Microsoft will be front and center in this economic period of uncertainty," says Wedbush, slashing the stock's PT to $475 from $550

Wedbush expects the pause in tariffs will add more uncertainty to capex spending for China-exposed US tech companies with the brokerage viewing this quarter as a 'mulligan for Microsoft' and for rest of the tech sector

90-day tariff pause has eased recession fears, but the real spending impact will be seen during the upcoming earnings season, adds Wedbush

Other tech stocks are also down with Tesla TSLA.O leading with a 3.74% decline, while Nvidia NVDA.O slips 3.72%; Amazon.com AMZN.O and Meta Platforms META.O down 2.51% and 2.83%, respectively

Apple AAPL.O and Alphabet GOOGL.O down 2.85% and 2.19%, respectively

Avg. rating of 60 analysts covering MSFT is "buy"; median PT $497 — data compiled by LSEG

Up to last close, MSFT stock had fallen ~7.4% YTD