FBN Securities Bullish On Microsoft Corporation

On Thursday, analysts at FBN Securities initiated coverage on Microsoft Corporation MSFT with an Outperform rating and $55 price target.

Shebly Seyrafi highlighted reasons for the initiation:

Microsoft continues to have a valuable franchise with Microsoft Office, and the company’s core business Microsoft Windows has been demonstrating improving growth, Seyrafi finds.

Analysts feel that Microsoft Office 2016 will be a large catalyst for the company, which is expected be announced at the end of calendar year 2015.

Seyrafi also feels that Microsoft Windows 10 with be particularly helpful with the enterprise.

Windows 10 is expected to be released during the latter part of 2015. The analyst stated, "As we estimate that enterprise accounts for about two-thirds of MSFT’s Windows revenue, the improved enterprise features should help drive strong Windows growth in the back half of calendar 2015."

In addition, Microsoft’s Xbox division has been a success and with the recent acquisition of Mojang, the maker of the Minecraft, analysts find that Xbox sales with benefit incrementally with control on the game.

Other positives to consider moving forward:
Microsoft internet assets are growing in value.
End of support for Windows Server 2003 in July 2015.
Microsoft Azure is a leading cloud business.

Microsoft closed Wednesday at $45.90.