FBR Capital Remains Bullish on Microsoft (MSFT) Ahead of Windows 10 Release

FBR Capital reiterates an Outperform rating and $53.00 price target on Microsoft (NASDAQ: MSFT) ahead of windows 10 release. Analyst Daniel Ives said that all eyes will be on the release as it follows a lackluster reception/adoption for Windows 8. MSFT is scheduled to be released on July 29th.

Ives commented, "With the much-anticipated launch of Windows 10 expected this Wednesday (July 29), investors are eagerly waiting to evaluate customer adoption trends as Nadella & Co. looks to make the transformational cloud transition with Windows in the hopes of reinvigorating growth and achieving similar success to the Office franchise transition. To this point, we believe developer traction/interest in the updated Windows product remains a key ingredient to the company's recipe for success and ensuring strong uptake down the road. With a more mobile workforce/consumer transitioning away from the PC, there are massive headwinds in Microsoft's bread and butter PC business, making it crucial the Windows 10 cloud approach opens up new growth avenues for the Windows business in FY16 and beyond to help offset some of the license decline. Overall, we believe the start of Microsoft's methodical launch of Windows 10 will be another stepping stone in Mr. Nadella's cloud vision taking hold, with the vetting process (~5 million Windows Insiders already) from developers/users providing valuable feedback from the field. We maintain our Outperform rating and $53 price target (15x multiple on an FY16E EV/FCF basis)."

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 $45.94 yesterday.

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