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Bank of America Says Structural Issues Could Pressure Microsoft's EPS Next 2-3 Years

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On Thursday, Bank of America released some bearish comments on Microsoft (NASDAQ: MSFT). Analyst Kash Rangan believes “structural issues could still pressure EPS growth in the next 2-3 years.”

Microsoft Office on iOS is a “positive” move, but Google's QuickOffice is a contender “on the rise,” Rangan said.

The transition to cloud appears more “defensive and value-neutral,” said the analyst. Rangan's analysis shows “Office 365/Azure are neutral to value creation and potentially negative to its Server & Tool biz.”

Shares of Microsoft are down 0.5 percent to $39.58 in Thursday's trading.

Latest Ratings for MSFT

DateFirmActionFromTo
Dec 2014Bank of AmericaDowngradesNeutralUnderperform
Dec 2014Piper JaffrayInitiates Coverage onOverweight
Nov 2014JefferiesInitiates Coverage onUnderperform

View More Analyst Ratings for MSFT
View the Latest Analyst Ratings

Posted-In: Bank of America Kash RanganAnalyst Color Analyst Ratings

 

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