Reports from Microsoft’s Analyst Day

Eric Savitz, author of Barron’s Tech Trader Daily, reports on the various analyst reviews following Microsoft’s Analyst Day.  The main news from the meeting involved the introduction of Zune, Microsoft’s iPod challenger.  It was also reported that there could be further delays with Windows Vista to ensure that the product is ready. 

In terms of what the analysts had to say, I found it interesting that the analysts’ value targets ranged from $30 to $33. I reported back in early May that I estimated that the intrinsic value of Microsoft’s stock was about $31.  I took some heat for that estimate but it doesn’t look like I’m too far off from the professional analysts for whatever that’s worth.  Rick Sherlund of Goldman Sachs came in at the lower end with a target of $30 and the UBS analyst, Heather Bellini’s target came in at the high end of the range.

Brendan Barnicle of Pacific Crest Securities noted it looked like work on Office was going better than Windows Vista. I did not realize that another version of Office was already in the works. If it does a good job in facilitating online collaboration, I think a new version of Office could help add to revenue growth.

There is a lot of change underway at this giant wide moat tech company. I think if they can turn this ship in the right direction, there will be a lot of value generated by this stock.

[Full Disclosure: I own shares of Microsoft (MSFT).]

Leave a Reply

Your email address will not be published. Required fields are marked *