Nomura Securities Maintains a 'Buy' on Microsoft; PC Supply Problems Not Too Bad for MSFT

Nomura Securities maintains a 'Buy' on Microsoft (NASDAQ: MSFT).

Nomura analyst, Rick Sherlund, said, "Windows 8 has the potential to disrupt current PC demand for Ultrabooks, so we expect Microsoft to take a low profile in featuring the product with consumers until it is ready to ship. We now expect a low profile for Windows 8 at CES. We discuss timing and longer-term strategic significance of Windows 8. The latest build, we hear, looks very good...PC supply disruptions from Thailand flooding mostly impact white-box suppliers in emerging markets, where piracy is high. We estimate the impact on Microsoft at roughly 1% of earnings, not material enough for us to change estimates."

"We see no near-term good news for Microsoft’s stock given the ongoing poor PC demand and now supply constraints in the PC industry relating to HDD problems from the flooding in Thailand. But the picture should get better as we approach the beta release of Windows 8 and we get closer to the new product cycle, Microsoft shares trade at 7.5x our calendar 2012 EPS estimates ex-cash and are rated Buy."

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 $25.22 yesterday.

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