Goldman Sachs Bumps Price Target On Microsoft (MSFT), Lowers Estimates on Slower Windows Growth

Goldman Sachs raised its price target on Microsoft (NASDAQ: MSFT) from $29 to $32 following better-than-expected Q4 EPS and in-line revenue. However, the firm retained their Neutral rating.

The firm noted that while gross margins of 73% was 40bps below the Street, operating margins of 38.3% was better than the 37.5% expected. All in, the quarter was better than expected, they said.

For the March quarter, Goldman trimmed revenue and EPS estimates due to lower growth for Windows. However, management continues to deliver on cost initiatives.

Goldman lowered revenue and EPS forecasts for March to $16.8 billion and $0.55, versus its prior $17.4 billion and $0.59. FY12 was lowered to $74 billion and $2.68 from $74.3 billion and $2.70.

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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