UPDATE: Morgan Stanley Ratchets Price Target Higher on Microsoft (MSFT)

(Updated - March 22, 2012 11:33 AM EDT)

Morgan Stanley boosted its price target on Overweight-rated Microsoft (NASDAQ: MSFT) from $33 to $37, saying Office 15 is the next catalyst. The new price target represents 16 percent upside from Wednesday's close.

Specifically, Morgan Stanley's Adam Holt believes Microsoft shares trading at just 11 times next year's estimated earnings means the market is not pricing in the potential for Office 15. Given that Office 15 will probably not make it to Apple's (Nasdaq: AAPL) iPad, he sees the new software suite providing a solid way for Microsoft to get more access to tablets and other mobile devices.

Holt raised his FY13 earnings estimate from $3.08 to $3.14 per share, which compares to the Street's current estimate of $3.01. Sales for the year move from $79.6 billion to $80.7 billion, versus the analyst estimate of $79.83 billion.

For an analyst ratings summary and ratings history on Microsoft click here. For more ratings news on Microsoft click here.

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