Additional Information
Market: NASDAQ
Sector: Software
EPIC: MSFT
Latest Price: 47.66  (0.30% Ascending)
52-week High: 49.61
52-week Low: 34.98
Market Cap: 392,854.00M
1 year chart
1 day chart

Microsoft Corporation is engaged in developing, manufacturing, licensing, and supporting a range of software products and services for different types of computing devices.

Microsoft drops on BofA Merrill Lynch downgrade

4th Apr 2013, 8:57 am by Mourad Haroutunian
BofA Merrill Lynch said the Windows product cycle and stock buyback programs haven't given Microsoft the expected boost. BofA Merrill Lynch said the Windows product cycle and stock buyback programs haven't given Microsoft the expected boost.

 

Microsoft Corp. (NASDAQ:MSFT) fell in pre-market trade on Thursday after Bank of America Merrill Lynch downgraded the world’s largest software maker to "neutral" from "buy".

BofA Merrill Lynch, which had maintained a "buy" rating on the stock since September 2008, said the Windows product cycle and stock buyback programs haven't given Microsoft the expected boost.

Shares of the Redmond, Washington-based company, dropped 0.5 percent to $28.42 at 8:41 a.m. 

Analysts at BofA Merrill Lynch said their "buy" thesis had been predicated on an aggressive $40 billion share buyback program and the Windows 7 product cycle. 

"We were hoping that [Microsoft] would make a bold foray with Windows 8 into smartphones and tablets," the analysts wrote in a note. 

"Conventional product cycle wisdom dictates that the stock should peak before a Windows launch, but we remained optimistic because the limited availability of touch-based devices impaired an objective assessment of Windows 8.

"Now, six months post launch, despite more available touch-based devices, Windows 8 lacks momentum, challenging our optimism."

BofA Merrill Lynch also lowered its 2013 PC forecast to down 5 percent year-over-year from down 3 percent year-over-year following PC supply chain data that indicates weak trends. 

Microsoft's price target was trimmed to $33.

The stock, with a market value of approximately $240 billion, has lost more than 11 percent in the past twelve months. It has 12 "strong buy", 11 "buy" and 15 "hold" recommendations by analysts, according to data provided by Thomson/First Call.

 

No investment advice


Proactive Investors North America Inc, trades as "Proactiveinvestors USA & Canada".


You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person. You further understand that none of the information providers or their affiliates will advise you personally concerning the nature, potential, advisability, value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter.


You understand that the Site may contain opinions from time to time with regard to securities mentioned in other products, including company related products, and that those opinions may be different from those obtained by using another product related to the Company. You understand and agree that contributors may write about securities in which they or their firms have a position, and that they may trade such securities for their own account. In cases where the position is held at the time of publication and such position is known to the Company, appropriate disclosure is made. However, you understand and agree that at the time of any transaction that you make, one or more contributors may have a position in the securities written about. You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate.


From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.


You understand that we may be providing advertising and/or marketing services to companies mentioned on the site. A full list of companies that are paying for services from us, or our affiliated companies in the UK and Australia can be viewed here