Collins Stewart Reiterates Microsoft (MSFT) $38 Price Target

Collins Stewart analysts Sandeep Aggarwal and Stan Velikov reiterated their Buy rating and price target of $38 for shares of Microsoft Corporation (Nasdaq: MSFT) after getting a look at the software giant's new mobile phone operating system.

The analysts attended the Mobile World Congress in Barcelona as Microsoft unveiled its new smartphone platform called Windows Phone 7.

Aggarwal believed that it was important for Microsoft to be competitive in the mobile phone market, as two of its biggest rivals, Google Inc. (NASDAQ: GOOG) and Apple Inc. (NASDAQ: AAPL), had moved into that market over the last few years.

The analyst believed that mobile internet is a huge opportunity and having an OS on phone with preinstalled products including search would be key to growth in the mobile internet business.

Microsoft closed at $27.93 on Friday.