Deutsche Bank Cuts PT on Microsoft (MSFT) to $36; Maintains Buy

Deutsche Bank lowers its price target on Microsoft (Nasdaq: MSFT) from $41 to $36 and maintains a Buy rating.

The firm believes Microsoft is "one of the best positioned companies given macro-economic concerns", but is concerned with "uncertainty over the Yahoo acquisition initiative, expected dilution if the deal consummates and longer term tougher comps within EDD..." Despite an expected strong quarter, Deutsche now sees less upside in Microsoft stock due to these issues.

Deutsche believes that a Microsoft/Yahoo! (Nasdaq: YHOO) deal would not close before summer of '09, meaning that the acquisition would not be accretive to Microsoft until 2011 "at the earliest under our best case scenario."

Deutsche's $36 price target on Microsoft represents a potential gain of 20% from Friday's closing price of $30.00.

Microsoft Corporation provides software products for computing devices worldwide. [BCS]

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