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Collins Stewart Reiterates a 'Buy' on Microsoft (MSFT); Raises PT Citing Upside in CY10

December 14, 2009 10:50 AM EST
MSFT Hot Sheet
Rating Summary:
    28 Buy, 13 Hold, 0 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 16 | Down: 7 | New: 23
Collins Stewart reiterates a 'Buy' on Microsoft (Nasdaq: MSFT), raises price target to $36.

Collins analyst says, "Stock is up 100% since we made MSFT our top pick on Mar 9th. We believe that 70%-80% upside from Win 7 and PCs recovery are largely in the stock's price. However, there are many aspects of Win 7 that are still not reflected in the price as well as upside from Office '10 & Azure, sustainable market share gain by Bing, and cost efficacy with economic recovery...Though we are encouraged by the marketshare gains by Bing in the past 5 months, MSFT gets credit for sustainable mkt share gain only if the trend continues in '10, once the $150mm ad campaign/buzz fades down...MSFT has completed 4-qtrs with unprecedented emphasis on cost controls. In our view, cost efficacy is now part of MSFT's work culture and the cost structure will remain tight even after the economy recovers."

To see all the upgrades/downgrades on shares of MSFT, visit our Analyst Ratings page.

Microsoft Corporation is engaged in developing, manufacturing, licensing, and supporting a range of software products and services for different types of computing devices.

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