Goldman Sachs this morning offered a glimmer of hope to Microsoft shareholders, adding the company to its "Conviction List" of favorite stocks and raising its 12-month price target for Microsoft's stock from $25 to $29.
"Windows 7, Windows Server 2008 R2, Bing, Xbox 360 and new Halo content, Office 2010, and the Azure Cloud provide renewed innovation beyond anything we have seen in multiple years," wrote Sarah Friar, Goldman Sachs analyst, in a note to clients. "Looking out to CY2010 and beyond, the new product pipeline, combined with a modest rebound in IT spending, should buoy top-line growth."
But don't look for short-term relief. Friar wrote that Goldman is "not overly optimistic on June quarter performance, given ongoing IT spending declines, but believe that investors are now looking out to a lift in growth rates in 2010."
Microsoft shares are up more than 2.8 percent this morning, to about $24.18, following the positive report.
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