Jefferies Starts Microsoft as a "Hold"; Windows 8 Could Underwhelm (MSFT)

Jefferies Starts Microsoft as a “Hold”; Windows 8 Could Underwhelm (MSFT)


Software giant Microsoft Corporation (MSFT) on Thursday received some tepic commentary from analysts at Jefferies & Co.

The firm initiated coverage on MSFT with a “Hold” rating and $35 price target, suggesting a 14% upside to the stock’s Wednesday closing price of $30.78.

A Jefferies analyst commented, “Microsoft is at a critical juncture as it tries to establish renewed relevance in consumer devices while also transitioning to deliver more cloud services across the portfolio. Despite low expectations and an undemanding valuation, we think W8 could underwhelm. If we are wrong and the company demonstrates new consumer relevance, we think we can revisit the stock given the multi-year opportunity that could afford.”

Microsoft shares were mostly flat in premarket trading Thursday.

The Bottom Line
Shares of Microsoft (MSFT) have a 2.60% dividend yield, based on last night’s closing stock price of $30.78. The stock has technical support in the $28 price area. If the shares can firm up, we see overhead resistance around the $32-$33 price levels.

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.

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