FBR Capital Remains Bullish on Microsoft (MSFT) Following Today's Windows 10 Hardware Launch
FBR Capital maintained an Outperform rating and $53.00 price target on Microsoft (NASDAQ: MSFT) following today's Windows 10 hardware launch event in NYC. The event was primarily focused on new hardware/device launches to help propel Microsoft's market/mind share in the consumer segment. Another focus today was around Hololens, as this next generation augmented reality product/strategy represents a change from the status quo as Nadella goes after this land grab, multi-billion dollar market opportunity.
Analyst Daniel Ives commented, "Today, October 6, we attended Microsoft's Windows 10 hardware launch event in NYC. With the Windows 10 platform central to Nadella's mobile and cloud vision, the event was primarily focused on new hardware/device launches (e.g., Surface Pro 4, Surface Book, Lumia 950/XL, Band 2) to help propel Microsoft's market/mind share in the consumer segment. Another focus today was around Hololens, as this next generation augmented reality product/strategy represents a change from the status quo as Nadella goes after this land grab, multi-billion dollar market opportunity. For Microsoft (and its investors), especially after ripping the Band-Aid off and writing down the failed Nokia acquisition, the Everest-like challenge for Nadella is trying to gain a foothold in the ever competitive smartphone landscape with Apple and Samsung firmly sitting on the summit. Now the underlying goal is for Microsoft to use its momentum and unified, cloud-centric Windows 10 architecture to help drive further consumer demand and ideally start to change the perception of Microsoft as a "rounding error" in the smartphone and tablet landscape. While the new hardware products look impressive, it all comes down to consumer adoption as Microsoft aggressively tries to change its consumer image. We maintain our Outperform rating."
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Shares of Microsoft closed at $46.63 yesterday.