Nomura Securities Maintains a 'Buy' on Microsoft (MSFT); Trimming Estimates
Tweet
Share
E-mailGet Alerts MSFT Hot Sheet
Price: $495.40 -0.3%
Rating Summary:
58 Buy, 11 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
58 Buy, 11 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Join SI Premium – FREE
Nomura Securities maintains a 'Buy' on Microsoft (NASDAQ: MSFT) price target of $32.00.
Nomura analyst, Rick Sherlund, said, "We are trimming our Microsoft estimates by 2% or $0.05 per share for fiscal (June) 2012 and 2013 to reflect some adjustments to our gross margin assumptions following the recently reported results. Recent follow-up comments from management suggest that the Street may not have fully grasped the extent of the impact of Skype, Yahoo traffic acquisition costs, head-count related expenses, and third-party royalties within the Xbox business on the gross margin. We characterize this as directionally consistent with our prior modeled assumptions, but of a higher magnitude. Our revenue estimates remain unchanged, and there is no change in our view that this is not a product cycle year. Our 2012E EPS goes from $2.74 to $2.69 and 2013E from $3.15 to $3.10."
For more ratings news on Microsoft click here and for the rating history of Microsoft click here.
Shares of Microsoft closed at $26.81 yesterday.
Nomura analyst, Rick Sherlund, said, "We are trimming our Microsoft estimates by 2% or $0.05 per share for fiscal (June) 2012 and 2013 to reflect some adjustments to our gross margin assumptions following the recently reported results. Recent follow-up comments from management suggest that the Street may not have fully grasped the extent of the impact of Skype, Yahoo traffic acquisition costs, head-count related expenses, and third-party royalties within the Xbox business on the gross margin. We characterize this as directionally consistent with our prior modeled assumptions, but of a higher magnitude. Our revenue estimates remain unchanged, and there is no change in our view that this is not a product cycle year. Our 2012E EPS goes from $2.74 to $2.69 and 2013E from $3.15 to $3.10."
For more ratings news on Microsoft click here and for the rating history of Microsoft click here.
Shares of Microsoft closed at $26.81 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Active options: MSFT PLTR AMD AMZN MRVL META HOOD SKHY RIOT ONDS
- Jefferies on Five Below (FIVE): 'Our latest channel checks reinforce our view that FIVE's momentum extends well beyond viral Squish trends'
- Freedom Broker Upgrades Lifeway Foods (LWAY) to Buy
Create E-mail Alert Related Categories
Analyst CommentsRelated Entities
NomuraSign 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!
