Morgan Stanley Thinks Microsoft Corporation's D&C Licensing Division May Be More Stable Than Thought

In a report published Thursday, Morgan Stanley analyst Keith Weiss reiterated an Equal-Weight rating on

. In the report, Morgan Stanley noted, “MSFT's D&C Licensing Division, which includes Windows and Consumer Office and comprises ~22% of MSFT's total rev., garners outsized attention from investors. Our analysis suggests slowing declines in PC shipments, modest tablet gains and increasing contribution from mobile licensing should stabilize D&C License revenue and margin contribution, despite pressure on Windows ASPs and the transition from Office to O365.” Microsoft Corporation closed on Wednesday at $38.27.