Nomura Securities Maintains a 'Buy' on Microsoft (MSFT); Details of Upgrade Program

Nomura Securities maintains a 'Buy' on Microsoft (NASDAQ: MSFT) price target of $37.00.

Analyst, Rick Sherlund, said, "Microsoft announced further details of the upgrade program and pricing for users that wish to move existing systems to Windows 8. We think there will be little interest in moving existing PCs to Windows 8, with most interest likely in buying new touch-enabled hardware to take full advantage of the new touch interface. Separately, MSFT is taking a $6.2 billion charge to write off the intangible value of its 2007 acquisition of aQuantive. We estimate that MSFT will show a loss of $2.0 billion (before this charge) in its online business this year (mostly Bing). Risk/reward profile is favorable at 7.4x CY13E earnings excluding $5.35 in net cash (tax-affected for repatriation) and 7.1x EV to uFCF. 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 $30.56 yesterday.

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