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Goldman Sachs Boosts Estimates for Microsoft; Higher Windows Revs Expected (MSFT)

Posted
5/4/2012 8:54:00 AM
By: Dividend.com
Referenced Stocks:MSFT

Software giant Microsoft Corporation ( MSFT ) on Friday caught some bullish commentary from analysts at Goldman Sachs.

Goldman maintained its "Neutral" rating and $34 price target on MSFT, which suggests a 7% upside to the stock's Friday closing price of $31.76.

However, the firm lifted its forecast for MSFT's Windows operating system unit revenue. Windows sales have been helped by higher PC shipments, said the broker.

Accordingly, Goldman Sachs boosted its 2012 earnings estimate from $2.72 to $2.74 per share. It also lifted its 2013 estimate from $2.99 to $3.01 per share, and 2012 estimate from $3.19 to $3.21 per share.

Microsoft shares posted small losses in premarket trading Friday.

The Bottom Line
Shares of Microsoft ( MSFT ) have a 2.52% dividend yield, based on last night's closing stock price of $31.76. The stock has technical support in the $28-$29 price area. If the shares can firm up, we see overhead resistance around the $33-$36 price levels.

Microsoft Corporation ( MSFT ) is not recommended at this time, holding a Dividend.com 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 .