Goldman Sachs Removes Microsoft From Conviction Buy List (MSFT)

Analysts at Goldman Sachs

have downgraded shares of Microsoft

from Buy to Neutral. The stock has also been taken off of the firm's Conviction Buy List. In addition, the analysts lowered their forward looking EPS estimates for MSFT and lowered their price target from $32 to $28. They wrote, "We believe the intrinsic coverage. We believe the intrinsic value of shares cannot be unlocked if the status quo remains, and we have increased caution near term on a more elongated PC refresh cycle, combined with the newer threat of notebook cannibalization from tablets, where Windows does not yet have a presence." Goldman laid out a number of steps that need to be taken at the company in order to unlock shareholder value. These include, a materially increased dividend beyond the recent 23% increase, a coherent consumer strategy, and a market leading position in the cloud computing space.