Jefferies analyst John DiFucci reiterated an Underperform rating and lowered his price target on Microsoft (NASDAQ: MSFT) to $37.00 (from $39.00) following Q4 results in a report entitled: "don't believe everything you read."

DiFucci commented, "MSFT’s F4Q headline numbers were slightly better than consensus, but top line mix was concerning and bottom line benefited by $0.05 from a $500M swing in other income. F1Q guidance was below estimates, as the corporate business looks to be weaker than anticipated. It also seems that any savings from recent $7.6B write down of Nokia assets and $750-850M restructuring, including a 7% workforce lay-off will not benefit the bottom line, but instead be reinvested."

The firm bumped Q1 EPS from $0.44 to $0.58, FY 2016 EPS from $2.11 to $2.56 and FY 2017 EPS from $2.66 to $2.83.

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Shares of Microsoft closed at $47.28 yesterday.