Microsoft (MSFT) Should Benefit From Strong PC Shipment Growth - Wells Fargo

Wells Fargo analyst Philip Winslow reiterated an Outperform rating and $160.00 price target on Microsoft (NASDAQ: MSFT) after IDC and Gartner released PC shipment data for the third quarter of 2019. Gartner reported shipment increase of 1.1% year-over-year while IDC reported a 3.0% increase which compares to a 0.4% year-over-year decrease in PC shipments in the analyst's model for Outperform-rated Microsoft.

Both IDC and Gartner noted that the growth for the second quarter in a row was attributable to the strong demand in the commercial segment and a continued Windows 10 refresh cycle. The analyst stated "With support for Windows 7 nearing end of life, we believe commercial demand will likely persist throughout 2019, which we view as a positive for Windows revenue into the second half of the calendar year. We believe that for the near to medium term, the PC market will be increasingly driven by demand for business PCs—a key pillar of our positive thesis on Microsoft".

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 $139.10 yesterday.

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