S&P Capital IQ Reiterates its BUY Rating on Microsoft, Target Price Reduced

October 24 00:00 2011

New York, October 24 (RainbowNewsLine.com) – Analyst Angelo Zino of S&P Capital IQ reiterates his BUY rating on the shares of Microsoft (NASDAQ: MSFT), while reducing his estimates for the company. The target price has been reduced from $35 to $33.

Analyst Angelo Zino, in a research report published on October 22, mentions that company reported its September quarter EPS marginally short of the estimates. Microsoft’s  revenues grew 7.3%, with growth in all business segments. Although the contribution from Windows was less than expected, the Entertainment and Device division is having good traction heading into the upcoming holiday season, the analyst says. The operating results of Microsoft’s Online Service Division are improving. The EPS estimates for FY12 (June) and FY2012 have been reduced from $2.96 to $2.86 and from $3.26 to $3.21, respectively.