Deutsche Bank maintained a Buy rating on Microsoft (NASDAQ: MSFT) with a price target of $55. Analyst Karl Keirstead characterized Q4 results as "not much to cheer about."

"While investors were already bracing for a mixed print given the weak PC market and disappointing results from ORCL, SAP and IBM, we conclude that MSFT’s 4QF15 results still fell short on the back of weak enterprise/Server numbers, gross margin pressure from the out-performance in lower-margin Surface/Xbox, an EPS beat that came largely from non-recurring gains and light 1QF16 non-GAAP revs guidance (of $21.0b, $900m below our estimate)," said Keirstead.

"We’re trimming our FY16 non-GAAP EPS estimate to $2.78 from $3.03 but are sticking with our BUY rating on the basis of the cloud transition story and valuation," continued the analyst

Keirstead added, "The negative PC impact (Windows OEM revs down 22%, D&C Licensing revs at the low end of guidance) was better-than-feared but PC weakness also weighed on consumer Office revs and on MSFT’s outlook (for no Win10 liftuntil the March/June 2016 qtrs and a y/y D&C Licensing decline of 15% in 1QF16). While this was partly expected, the deceleration in the Enterprise segments (Server Product and Enterprise Services c/c revs growth of just 5%) was not and is a key reason that MSFT’s total Commercial revs guidance of $12.3b for 1QF16 came up $630m short of our estimate, explaining most of the revs shortfall. MSFT flagged the Windows Server business and pressure in the server hardware market (not a great read-through to RHT) and we wonder if MSFT felt the same overall infrastructure IT spending sluggishness that hit IBM, ORCL and others."

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Shares of Microsoft closed at $47.28 yesterday.