Wells Fargo Maintains a 'Market Perform' on Microsoft (MSFT); Q2 Results Much As Expected
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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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Wells Fargo maintains a 'Market Perform' on Microsoft (NASDAQ: MSFT) price target range $28-30.
Wells analyst says, "MSFT's fiscal Q2 performance came in pretty much in line with its previously indicated expectations. For Q2, MSFT reported revenue of $20.89B and EPS of $0.78. Windows revenue declined 2% and came in at $4.77B due to HDD issues and consumer preference for tablets. Our thesis on Microsoft remains unchanged, as we believe the stock is only reasonably undervalued at current levels; we don't expect to see much lift until Windows 8 is released and/or Windows Phone shows some traction in the Smartphone market. We believe multiple expansion is largely predicated on the company making demonstrable inroads in mobile computing. We like the new look and feel of the WP7 devices and think Windows 8 has promise. With the shares trading under 10x FY2012E EPS, we don't envision much downside risk and think the stock offers some
defensibility. We are modeling revenue of $74.2B and EPS of $2.70 for FY2012 and $78.3B revenue and $2.96 in EPS (revised from $3.00) for FY2013."
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.
Wells analyst says, "MSFT's fiscal Q2 performance came in pretty much in line with its previously indicated expectations. For Q2, MSFT reported revenue of $20.89B and EPS of $0.78. Windows revenue declined 2% and came in at $4.77B due to HDD issues and consumer preference for tablets. Our thesis on Microsoft remains unchanged, as we believe the stock is only reasonably undervalued at current levels; we don't expect to see much lift until Windows 8 is released and/or Windows Phone shows some traction in the Smartphone market. We believe multiple expansion is largely predicated on the company making demonstrable inroads in mobile computing. We like the new look and feel of the WP7 devices and think Windows 8 has promise. With the shares trading under 10x FY2012E EPS, we don't envision much downside risk and think the stock offers some
defensibility. We are modeling revenue of $74.2B and EPS of $2.70 for FY2012 and $78.3B revenue and $2.96 in EPS (revised from $3.00) for FY2013."
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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