UPDATE: JP Morgan Downgrades Microsoft

JP Morgan on Tuesday downgraded Microsoft Corporation (NASDAQ: MSFT) from Overweight to Neutral while lowering their price target from $53 to $47 amid concerns over spending.

Analyst Mark Murphy wrote, “Q2 results were consistent with our expectations, as revenue grew 8% y/y (vs. consensus of 7%) and PF EPS of $0.77 (excluding a $0.04 tax impact) exceeded consensus of $0.74, underpinned by strong Commercial Cloud revenue growth of 114% y/y. While revenue guidance was impacted by adverse FX movement consistent with expectations, Microsoft will not exercise as much spending discipline as we had anticipated, resulting in an 8% reduction in our FY15 EPS forecast.”

Shares of Microsoft closed Monday at $47.01.