Wells Fargo Maintains a 'Market Perform' on Microsoft (MSFT); Q2 Results Much As Expected
Tweet Send to a FriendGet Alerts MSFT Hot Sheet
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
Trade MSFT Now!
Wells Fargo maintains a 'Market Perform' on Microsoft (NASDAQ: MSFT) price target range $28-30.
Wells analyst says, "MSFT's fiscal Q2 performance came in pretty much in line with its previously indicated expectations. For Q2, MSFT reported revenue of $20.89B and EPS of $0.78. Windows revenue declined 2% and came in at $4.77B due to HDD issues and consumer preference for tablets. Our thesis on Microsoft remains unchanged, as we believe the stock is only reasonably undervalued at current levels; we don't expect to see much lift until Windows 8 is released and/or Windows Phone shows some traction in the Smartphone market. We believe multiple expansion is largely predicated on the company making demonstrable inroads in mobile computing. We like the new look and feel of the WP7 devices and think Windows 8 has promise. With the shares trading under 10x FY2012E EPS, we don't envision much downside risk and think the stock offers some
defensibility. We are modeling revenue of $74.2B and EPS of $2.70 for FY2012 and $78.3B revenue and $2.96 in EPS (revised from $3.00) for FY2013."
For an analyst ratings summary and ratings history on Microsoft click here. For more ratings news on Microsoft click here.
Shares of Microsoft closed at $28.12 yesterday, with a 52 week range of $23.65-$29.46.
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
*NEW - Download StreetInsider's FREE iPhone and iPad App - Click Here
Wells analyst says, "MSFT's fiscal Q2 performance came in pretty much in line with its previously indicated expectations. For Q2, MSFT reported revenue of $20.89B and EPS of $0.78. Windows revenue declined 2% and came in at $4.77B due to HDD issues and consumer preference for tablets. Our thesis on Microsoft remains unchanged, as we believe the stock is only reasonably undervalued at current levels; we don't expect to see much lift until Windows 8 is released and/or Windows Phone shows some traction in the Smartphone market. We believe multiple expansion is largely predicated on the company making demonstrable inroads in mobile computing. We like the new look and feel of the WP7 devices and think Windows 8 has promise. With the shares trading under 10x FY2012E EPS, we don't envision much downside risk and think the stock offers some
defensibility. We are modeling revenue of $74.2B and EPS of $2.70 for FY2012 and $78.3B revenue and $2.96 in EPS (revised from $3.00) for FY2013."
For an analyst ratings summary and ratings history on Microsoft click here. For more ratings news on Microsoft click here.
Shares of Microsoft closed at $28.12 yesterday, with a 52 week range of $23.65-$29.46.
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
*NEW - Download StreetInsider's FREE iPhone and iPad App - Click Here
You May Also Be Interested In
- Microsoft (MSFT) Rally is Over, Says Barclays
- Apple (AAPL), Samsung Could Crumble Under High-End Smartphone Pressure
- Goldman Sachs Downgrades Aixtron (AIXG) to Neutral
Create E-mail Alert Related Categories
Analyst CommentsRelated Entities
Wells Fargo
Login with Facebook
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
