Nomura Securities Maintains a 'Buy' on Microsoft (MSFT); 2Q Review - Limping Through to Windows 8

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

Analyst, Rick Sherlund, said, "Results and outlook about as expected. Q2 (Dec) revenues were up 5% and in-line with the Street and a bit better than our recently reduced estimates, and EPS of $0.78 that was above the Street of $0.76 and our $0.75 estimate. We have been below the Street and are maintaining our full year EPS estimate of $2.63 vs $2.69 last year and expect results to remain unexciting until Microsoft ships 4 major new products later this year, including the very strategic new Windows 8. Microsoft’s stock seems to have baked in the expectation of no growth in FCF into perpetuity; we think that this is likely too pessimistic in light of upcoming new products. We rate the shares Buy at 8.9x cal 2012E EPS excash and 8.0x 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 $28.12 yesterday.

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