Standard & Poor’s analyst Jim Yin Tuesday raised his rating on Microsoft (MSFT) to Buy from Hold, with a new price target of $26, up from $22.
Yin says the company should reap rewards in the June 2010 fiscal year from recent product announcements, including Windows 7 and Bing. He says overall the search results from Bing are inferior to those produced by Google (GOOG), but that “Bing is more organized with links to websites sorted by categories and more adept in finding the lowest travel fare.” He also thinks Project Natal, a controller-free input device “will revolutionize the video game industry.”
Yin ups his FY 2010 EPS estimate to $1.80, from $1.71.
MSFT Tuesday is up 10 cents, at $22.15.