Nomura Securities Maintains a 'Buy' on Microsoft (MSFT); Gartner Forecast Revised, But Growth Still Robust
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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 $37.00.
Analyst, Rick Sherlund, said, "Over the weekend, Gartner updated its PC numbers with its revised forecast. Gartner is now looking for unit shipment growth of 0.9% in CY’12 and 11.1% in CY’13, below its previous forecasts of 4.4% and 11.9%, respectively. Further, Gartner has kept its tablet shipment assumptions for CY’12 roughly the same at 116mn units, although it has reduced CY’13 shipments by ~8% to 168mn units, still representing robust growth of 45% y/y. Gartner expects the combined PC and tablet market to grow 13.5% and 19.2% in CY’12 and CY’13, respectively."
Overall, Sherlund sees favorable risk/reward at 7.3x CY’13E earnings excluding $5.35 in net cash...We are bullish on CY’13, anticipating a rich year of strategic and high-margin products in Microsoft’s most profitable divisions."
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 $30.02 yesterday.
Analyst, Rick Sherlund, said, "Over the weekend, Gartner updated its PC numbers with its revised forecast. Gartner is now looking for unit shipment growth of 0.9% in CY’12 and 11.1% in CY’13, below its previous forecasts of 4.4% and 11.9%, respectively. Further, Gartner has kept its tablet shipment assumptions for CY’12 roughly the same at 116mn units, although it has reduced CY’13 shipments by ~8% to 168mn units, still representing robust growth of 45% y/y. Gartner expects the combined PC and tablet market to grow 13.5% and 19.2% in CY’12 and CY’13, respectively."
Overall, Sherlund sees favorable risk/reward at 7.3x CY’13E earnings excluding $5.35 in net cash...We are bullish on CY’13, anticipating a rich year of strategic and high-margin products in Microsoft’s most profitable divisions."
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 $30.02 yesterday.
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