Jefferies Raises Estimates on Microsoft (MSFT), Maintains Buy Rating

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Jefferies is keeping their Buy rating on Microsoft (NASDAQ: MSFT) as 55 major retail outlets in the US indicate Kinect is largely sold out. The firm reports that the Kinect is on pace to be the fastest-selling device of all time. They are raising their EPS/revenue estimates for FY11 and FY12 to $2.51/$68.4B and $2.74/$73.6B from $2.48/$67.3B and $2.70/$71.4B. The device has been selling at 2.5x the rate of the iPad since debut. It is on track to sell 5M units over 50 days, which is 100,000 units per day through Christmas, the iPad only sold 1M units in the first 27 days it was available. Jefferies states that, "Kinect as an important psychological win for Microsoft as it seeks to regain relevance in consumer tech", which will in turn help neutralize the current negative sentiment on the stock. "

For more ratings news on Microsoft click here and for the rating history of Microsoft click here.

Shares of Microsoft closed at $27.62 yesterday, with a 52 week range of $22.73-$31.58.

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