UPDATE: Goldman Sachs Downgrades Microsoft to Sell on Worsening PC Trends, Lack of Tablet/Smartphone Traction

In a report published Thursday, Goldman Sachs analyst Heather Bellini downgraded the rating on Microsoft Corporation MSFT from Neutral to Sell, and lowered the price target from $30.00 to $27.00. In the report, Bellini noted, “We downgrade Microsoft to Sell from Neutral, relative to our coverage, as we see 11% downside to our $27, 12 month target price. On a total return basis (including dividends) the stock shows 8% downside versus an average upside of 10% for our universe. We lower our estimates and ratings to reflect worsening PC trends and a lack of traction in tablets and smartphones. We have 4% average downside to FY13/14 estimates. While GDP is expected to improve in H2, which will benefit IT spend, we see other companies under coverage as better positioned to benefit versus Microsoft.” Microsoft Corporation closed on Wednesday at $30.28.