UPDATE: MKM Partners Assumes Microsoft (MSFT) at Buy
MKM Partners assumed coverage on Microsoft (NASDAQ: MSFT) with a Buy rating and a price target of $52.00.
Analyst Kevin Buttigieg said, "Several MSFT catalysts have already been realized –investors now see a future beyond the PC and a new CEO representing a break with the past. And the positive effects of a significant cost savings effort is already factored into guidance and consensus. At the same time, new initiatives are showing traction and are incremental to revenue growth and earnings, more so the former than the latter, though it does illustrate a positive future. And MSFT’s shares, by virtue of the company’s size, share buybacks, and 2.4% dividend yield may be seen as a safe haven by investors should difficult equity market conditions arise. Finally the impact of product upgrade cycles, including a potentially huge one in Windows Server, do not appear to be factored into guidance and consensus. As such we think there is greater likelihood of upside to MSFT shares than downside, hence we rate the shares Buy with a 12-month price target of $52 (approximately 16x our FY16 EPS of $3.19)."
For an analyst ratings summary and ratings history on Microsoft click here. For more ratings news on Microsoft click here.
Shares of Microsoft closed at $46.76 yesterday.