FBR Capital Reiterates Bullish View on Microsoft (MSFT) Following 'White Hot' Windows 10 Number

FBR Capital analyst Dan Ives reiterated an Outperform rating and $60 price target on Microsoft (NASDAQ: MSFT) after the company ahead of CES that 200 million devices are now running on Windows 10 since its launch in July. Ives called this a "white hot" number as this is up markedly from the 110 million figure given in October.

"While many on the Street have fretted about the free-upgrade strategy, arguing the expiration-driven cycle will only provide a one-time benefit for Microsoft (and its investors), we believe this remains the "only way to go," as Nadella needs to drive mass adoption across consumers and enterprises with the underlying goals of creating a more consistent platform experience and attracting an increased number of developers/apps for its mobile offerings and devices," Ives commented.

He added, "We are hearing positive signs from the developer community since the launch of the new Surface/Surface Book, Lumia lineup, and hints of the Hololens/augmented reality strategy for 2016 and beyond for Windows 10 and Xbox, which could be a catalyst for the all-important developer community to further embrace Windows 10. Clearly the PC supply chain continues to face Kilimanjaro-like headwinds, making it crucial that the Windows 10 cloud approach opens up new growth avenues for Redmond and Nadella into 2016 and beyond."

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 $55.48 yesterday.

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