Jefferies Reiterates Underperform on Microsoft (MSFT) Following Build Event

Jefferies maintained an Underperform rating and $40.00 price target on Microsoft (NASDAQ: MSFT) following a company Build event. The emphasis of the conference was around the Universal Windows Platform (UWP) which is meant to be open and device agnostic. Management provided a Project Centennial update highlighting the ability to convert legacy Windows desktop apps to the Windows store and run them on the UWP.

Analyst John DiFucci commented, "We attended MSFT’s Build event, where the Universal Windows Platform was highlighted. We believe most announcements were largely expected. We’re also reducing our MSFT estimates to reflect latest PC forecasts. Our stock view is unchanged as we see MSFT as overly dependent on secularly challenged PCs, material risk to a cloud transition, and believe future cash flow implied in valuation is highly unlikely. Maintaining Underperform and $40 price target."

For an analyst ratings summary and ratings history on Microsoft click here. For more ratings news on Microsoft click here.

Shares of Microsoft closed at $55.57 yesterday.

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