Sunday, October 3, 2010

Mr. Softy gets a downgrade

Got this email tonight via $GS on $MSFT:

"We are downgrading Microsoft to Neutral and
lowering our EPS estimates by 4%, 3% and 4% in
FY2011, FY2012 and FY2013, and therefore our price
target to $28 from $32, which suggests more upside
in other Buy-rated names in our coverage. We
believe the intrinsic value of shares cannot be
unlocked if the status quo remains, and we have
increased caution near term on a more elongated PC
refresh cycle, combined with the newer threat of
notebook cannibalization from tablets, where
Windows does not yet have a presence. Since added
to the Americas Buy list on 8/12/08, MSFT shares
have returned -13%, compared to -11% for the S&P
500."

No comments: