Deutsche Bank Maintains Buy on Microsoft Ahead of Office 2013 Upgrade

Deutsche Bank has published a research report on Microsoft

and has adjusted estimates following the company's Office 2013 upgrade program. In the report, Deutsche Bank wrote, "MSFT today announced the Office 2013 upgrade program beginning October 19th 2012, offering customers who purchase a copy of Office 2010 a free upgrade to Office 2013. MSFT did not announce when the program will end, but we estimate the program will run through June 2013. Office 2013 is expected to be available during the Feb 2013 time frame. The upgrade program would impact the near term MBD revenues as a portion of the Office revenues would need to be deferred to the earlier of the fulfillment date or the expiration of the program. The upgrade program allows people who purchase Office 2010 or Office for Mac 2011 to download for free, one year of Office 365 Home Premium or the equivalent Office 2013 offering. For F1Q13, MSFT will defer an estimated $100m - $140m of revenues related to licenses sold in the distribution channel that will subsequently be sold to consumers beginning October 19th, 2012." Deutsche Bank maintained its Buy rating and $35 price target on Microsoft, which is currently trading down 0.11 percent from Monday's $31.29 closing price.