Collins Stewart Maintains Buy, $33 Target on Microsoft

Collins Stewart reiterates its Buy rating and $33 target price on Microsoft (NASDAQ: MSFT) as the company's focus returns to product launches.

Collins Stewart says, "MSFT's commentary last week that PC sales in the December quarter were worse than expected raised investor concerns about a possible shortfall to F2Q12 total revenues and EPS. While F2Q12 PC revs were in fact weaker than our lower-than-consensus estimate, the revenue loss was offset elsewhere and lower opex helped drive EPS better than consensus. With fears of wider issues allayed, and PC's likely at their lowest point, investor attention will likely return to MSFT's 2012 product releases including Windows 8, which should allow the shares to realize P/E multiple expansion and continue to work higher."

MSFT closed at $28.12 per share on Thursday.