Nomura Securities Maintains a 'Buy' on Microsoft (MSFT); Reducing Estimates on Weaker PC Supply Chain
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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
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Nomura Securities maintains a 'Buy' on Microsoft (NASDAQ: MSFT) price target of $32.00.
Nomura analyst, Rick Sherlund, said, "We have reduced our Microsoft estimates to reflect a more negative impact from the HDD supply constraints resulting from the flooding in Thailand. This follows comments from Tami Reller (CFO and head of marketing for the Windows and Windows Live Division) at the Nomura Technology Conference at CES yesterday. Hardware OEMs have indicated that the impact was greater than the -1% y/y PC shipment decline we and Gartner had estimated for the December quarter. We now assume the decline was more like 7%. For the March quarter, we have assumed unit sales of down 13% y/y versus earlier down 11%. No change in our positive view of the Ultrabook Touch cycle beginning in the September/October timeframe. Our 2012E EPS goes from $2.69 to $2.63. Microsoft shares are trading at about 8.5x CY ’12E EPS (ex-cash of $4.56 per share) and 8x EV/uFCF."
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 $27.84 yesterday.
Nomura analyst, Rick Sherlund, said, "We have reduced our Microsoft estimates to reflect a more negative impact from the HDD supply constraints resulting from the flooding in Thailand. This follows comments from Tami Reller (CFO and head of marketing for the Windows and Windows Live Division) at the Nomura Technology Conference at CES yesterday. Hardware OEMs have indicated that the impact was greater than the -1% y/y PC shipment decline we and Gartner had estimated for the December quarter. We now assume the decline was more like 7%. For the March quarter, we have assumed unit sales of down 13% y/y versus earlier down 11%. No change in our positive view of the Ultrabook Touch cycle beginning in the September/October timeframe. Our 2012E EPS goes from $2.69 to $2.63. Microsoft shares are trading at about 8.5x CY ’12E EPS (ex-cash of $4.56 per share) and 8x EV/uFCF."
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 $27.84 yesterday.
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