Micosoft (MSFT) Efforts Failed to Offset PC Decline, Deutsche Bank Remains Sidelined

Deutsche Bank today maintained a Hold rating on Microsoft (NASDAQ: MSFT) with a modified price target of $34.00 (from $35.00). Share of Microsoft declined after the close Thursday following disappointing Q4 result. In the view of analyst Nandan Amladi, PC weakness remains a key concern.

"While bulls will point to strong traction in Azure and Office 365, bookings and unearned revenues beating expectations, bears will point out the impact of continued PC weakness on MSFT's business," said Amladi. "We believe that MSFT is taking steps in the right direction, as it positions itself for the post-PC and Cloud era, but hasn't been able to stem the negative tide of PC cannibalization. Windows 8 was expected to catalyze the resurgence of Windows devices, but so far hasn't had a material impact."

"Increased availability of Windows based touch devices, newer form factors, release of INTC’s Haswell chip and the holiday season is expected to drive adoption of Windows devices. The company's momentum in Azure and Office 365 is a positive, but we believe continued weakness in PCs remains a concern, and we remain on the sidelines," concluded the analyst.

For an analyst ratings summary and ratings history on Microsoft (NASDAQ: MSFT) click here. For more ratings news on Microsoft click here.

Shares of Microsoft closed at $35.44 yesterday.

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