Microsoft (NASDAQ:MSFT) shares haven’t touched the $30 level in more than a year. But the stock has been rallying impressively since bottoming in the $15 range in March - can it complete the double?
Some analysts think so. In fact, two of them this morning upped their targets on the stock to exactly $30.
- Deutsche Bank analyst Todd Raker Monday repeated his Buy rating no the shares, lifting his target to $30, from $22. He thinks the stock is going to get some lift from the coming Windows 7 upgrade cycle, which he contends has yet to be priced into the stock. His view is that the lower hardware requirements for Windows 7 will make upgrades from Vista more likely, and that Widnmows ASP erosion is likely to abate with the arrival of the new OS. He also notes that over the last 5 major OS releases, the stock has outperormed the S&P by 20% in the four months leading up the launch.
- Collins Stewart analyst Sandeep Aggarwal likewise repeated his Buy rating, while boosting his target to $30, from $26. Despite the fact that the stock has rallied 60%, he thinks EPS estimates remains too low for the June 2010 fiscal year - and for for FY 2011 as well. He sees results driven by higher Windows 7 prices for OEMs, higher-than-expected cost cutting and a strong debut for Bing.
MSFT Monday is up 40 cents, or 1.7%, to $23.75.