Citi Comments on Microsoft (MSFT); Says Co. Not Intent on Alienating OEMs
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Price: $34.15 -1.33%
Rating Summary:
23 Buy, 20 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 21 | Down: 24 | New: 29
Rating Summary:
23 Buy, 20 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 21 | Down: 24 | New: 29
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Microsoft Corp. (Nasdaq: MSFT) shares are lower Monday, holding firm into the close following an earlier report from Citi that it was impressed with what's going on under the software giant's hood.
According to the Citi analyst, Microsoft's Surface tablet is an impressive device, but he doesn't think its made to put off other OEMs. He also believes that Microsoft shares will fade into the launch of Windows 8 as non-touch systems could hurt its reception.
But, looking at 2013, the analyst thinks Microsoft will benefit as more and more touch systems begin to flood the market.
With peers Dell (Nasdaq: DELL) and Hewlett-Packard (NYSE: HPQ), the Citi analyst thinks Microsoft will ultimately leak back innovation's in the Surface through licensing commitments. This will benefit both Microsoft and OEMs, because all hardware for Windows 8 will likely be higher-quality, making Microsoft more competitive with Google (Nasdaq: GOOG) and Apple (Nasdaq: AAPL) in terms of both functionality and design.
Citi rates Microsoft at Buy with a $35 price target.
Shares of Microsoft are down 0.4 percent.
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According to the Citi analyst, Microsoft's Surface tablet is an impressive device, but he doesn't think its made to put off other OEMs. He also believes that Microsoft shares will fade into the launch of Windows 8 as non-touch systems could hurt its reception.
But, looking at 2013, the analyst thinks Microsoft will benefit as more and more touch systems begin to flood the market.
With peers Dell (Nasdaq: DELL) and Hewlett-Packard (NYSE: HPQ), the Citi analyst thinks Microsoft will ultimately leak back innovation's in the Surface through licensing commitments. This will benefit both Microsoft and OEMs, because all hardware for Windows 8 will likely be higher-quality, making Microsoft more competitive with Google (Nasdaq: GOOG) and Apple (Nasdaq: AAPL) in terms of both functionality and design.
Citi rates Microsoft at Buy with a $35 price target.
Shares of Microsoft are down 0.4 percent.
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