BGC Financial Reiterates Buy Rating, $31 PT on Microsoft Corporation

In a report published Friday, BGC Financial reiterated its Buy rating and $31.00 price target on Microsoft Corporation

. BGC Financial noted, “The company pays a dividend of $0.23 / quarter for a yield of 3.3% that compares favorably to the S&P500 yield of 2.14%. The company is among the best in the space at returning cash to shareholders with $3.5B returned to investors in the December quarter in dividend and buybacks. MSFT has $68.3B in cash ($8.09 / share) and $11.9B long term debt as of December 31, 2012. Microsoft generated a cash flow of $4.7B from operations in the December quarter. Shares trade at a reasonable 10x our FY13 EPS of $2.88. We maintain our $31 target.” Microsoft Corporation closed on Thursday at $27.91.