FBR Capital analyst David Hilal this morning raised his rating on Microsoft (MSFT) to Outperform from Market Perform, with a new $32 price target, up from $31.
Hilal cites three reasons for the more bullish stance:
- “Multiple product cycle across all divisions that should have a lasting effect throughout 2011.
- Strong corporate PC refresh cycle.
- Attractive risk/reward given recent underperformance – the stock is down 18% year to date – and improving fundamentals.
“Microsoft is in the midst of a massive product cycle across many of its divisions,” Hilal writes in a research note. “Most importantly, we believe we are in the early stages of the corporate PC cycle refresh that should
provide a boost to the company�s flagship desktop offerings (Windows 7 and Office 2010).”
MSFT this morning is up 58 cents, or 2.3%, to $25.59.
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