Microsoft color on qtr
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FBR Capital notes, MSFT delivered a good FY3Q as it beat the Street on the bottom line and was in line on the top line. The good performance continues to be centered around success in the cloud with improved traction from Azure and Office 365. Although June quarter guidance (F4Q) came in below the Street, firm believes Mr. Nadella will be given a "get out of jail free card" given the recent unveiling of newer strategies. Overall, firm views 3Q as another step in the right direction for co in light of the softness firm has seen from other large-cap technology players; Mkt Perform, tgt raised to $43 from $40.
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Oppenheimer notes, MSFT delivered a solid F3Q14 that beat consensus expectations. Performance was driven by: 1) broad-based growth across all product families; 2) continued strong internal execution; and 3) a stabilizing PC market in the developed world coupled with PC refresh cycle. Mgmt did provide some color about the NOK acquisition, which closes on 4/25. The addition of ND&S is a key component to the MSFT's "Mobile & Cloud" strategy, with this qtrs results displaying the strength of cloud. The integration carries some risk, but given new mgmt, firm believes it can be navigated; Outperform, tgt raised to $45 from $38.
- RBC Capital Mkts notes, MFST reported a solid 3Q outperforming on most metrics. The highlight of the qtr was unearned revenue which was nearly $1 bln above consensus. Guidance was effectively in-line and doesn't include the impact of Nokia, which will close on 4/25. Maintain Sector Perform rating as co's consistency is impressive, but seems fully valued at firm's $44 target.
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Credit Suisse raised its MSFT tgt to $47 from $42.50
- JP Morgan raised its MSFT tgt to $35 from $32; Neutral
- Cowen raised its MSFT tgt to $42 from $40; Mkt Perform