Jefferies Reiterates Buy Rating on Microsoft (MSFT)

Jefferies & Company is out with a research report this morning, where it reiterates its Buy rating on Microsoft Corp.

; it has a $33.00 price target on the stock. The Jefferies analysts believe that MSFT's recent dividend raise, as well as its announcement that it will be borrowing $6 billion to repurchases shares is bullish for the stock. The analysts believe that the company is now listening to share holders; they noted that those holding out for a special dividend or a doubling of the dividend might be disappointed, though. As for valuation, the analysts remarked, “Our $33 price target applies the current S&P multiple of 12.6x for CY10 to our CY10E EPS for Microsoft, plus $5.03 in net cash. We believe MSFT should be assigned a market multiple given its overlapping product cycles, market dominance, growth and profitability profile.” Talk to other investors at