Nomura Maintains "Buy" on Microsoft; Windows 8 to Provide Growth (MSFT)

Nomura Maintains “Buy” on Microsoft; Windows 8 to Provide Growth (MSFT)


Software giant Microsoft Corporation (MSFT) on Friday received some additional bullish commentary from anlaysts at Nomura Securities.

The firm maintained its “Buy” rating on MSFT as well as its $37 price target, which suggests a 15% upside to the stock’s Thursday closing price of $32.12.

A Nomura analyst commented, “Meeting Tami Reller, the head of marketing and CFO of the Windows and Windows Live Division at Microsoft. Microsoft will not be adding back the Start Button. They will add a tutorial to show keyboard/mouse users the new commands that they need to orient themselves with in the new OS. We have not seen the controversy on the touch (Metro) side, and this is where all the industry growth will come. Our next look at the product will be the Release Candidate (RC), which we have expected by June, followed by the Release to Manufacturing (RTM) in late July or August, and finally the release to General Availability (GA) in September or October.”

Microsoft shares rose 20 cents, or +0.6%, in premarket trading Friday.

The Bottom Line
Shares of Microsoft (MSFT) have a 2.49% dividend yield, based on last night’s closing stock price of $32.12. The stock has technical support in the $28-$30 price area. If the shares can firm up, we see overhead resistance around the $34-$36 range.

Microsoft Corporation (MSFT) is not recommended at this time, holding a DARS™ Rating of 3.4 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks, as well as a detailed explanation of our ratings system here.