BarCap cuts Microsoft price target to $28 from $30

Discussion in 'Stocks' started by ASusilovic, Oct 14, 2010.

  1. Barclays Capital cut its price target 6.7% on shares of Microsoft Corp. the Redmond, Wash., software and tech giant. In a Thursday report, analyst Israel Hernandez pared his target to $28 a share from $30, citing Wednesday reports from IDC and Gartner that third-quarter personal-computer unit sales were below expectations. Hernandez rates the stock equal weight. For now, BarCap is affirming its first-quarter estimates for MSFT of 55 cents a share of earnings on revenue of $15.72 billion. A survey of analysts by FactSet Research puts the current analyst consensus estimates at 55 cents and $15.81 billion. Slower demand for PCs will hurt Windows and the Office software suite, but other Microsoft divisions, especially servers and entertainment, "could offset some of the shortfall," Hernandez wrote. He added that "this news has largely already been reflected in Microsoft's share price." But concern about potential market-share losses to Apple Inc.'s iPad "are likely to remain an overhang on sentiment over the next few months," he wrote.

    http://www.marketwatch.com/story/barcap-cuts-microsoft-price-target-to-28-from-30-2010-10-14

    Very strange. In the middle of QE II "expectations"... :cool: