Jefferies & Co. reported on Thursday that they have maintained their "Hold" rating for software company, Microsoft Corporation( MSFT ), but have lowered its price target.
The firm reported that they are reaffirming their current "Hold" rating on MSFT, but are reducing the company's price target from $34 to $31. This price target suggests an 11% increase from the stock's current price of $27.47.
Analysts believe that Windows 8 is still a work in progress, and the overall success of products including tablets and smartphones is not yet proven.
An analyst from the firm commented, "we still believe that current limited availability of W8 touch devices, X86 tablets and the myriad of cheap consumer alternatives means that MSFT has yet to find broad consumer adoption. But MSFT's comments re customer feedback on W8 is better than many feared and we continue to monitor the situation closely."
Microsoft shares were mostly flat during premarket trading Thursday. The stock is up 9.44% YTD.
The Bottom Line
Shares of Microsoft ( MSFT ) have a 3.36% dividend yield, based on last night's closing stock price of $27.36. The stock has technical support in the $25-$26 price area. If the shares can firm up, we see overhead resistance around the $29-$30 price levels.
Microsoft Corporation( MSFT )is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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