Nomura Securities maintains a 'Buy' on Microsoft (MSFT); Preliminary PC Market Results for 3Q11

Nomura Securities maintains a 'Buy' on Microsoft (NASDAQ: MSFT) price target of $32.00.

Nomura analyst, Rick Sherlund, said, "After the close, Gartner (NYSE: IT) announced its preliminary PC market results for 3Q11. While the 3% growth was a bit below Gartner’s latest expectations, it was in line with our assumptions in our MSFT model over the next 12-months. For Microsoft’s fiscal (June) 2012, we are forecasting 6% growth in business PC shipments, based on an ongoing PC replacement cycle with Windows 7 upgrades, and model consumer PC shipments flat. Overall, we do not expect much growth in the market until Windows 8 ships along with an upgrade cycle to the related new hybrid tablet/Ultrabooks...The stock is selling at 8x our fiscal 2012 earnings estimate, excluding cash of $4.50 per share."

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

Shares of Microsoft closed at $26.96 yesterday.

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