Following Tuesday's fourth quarter earnings, Bank of America upgraded shares of Microsoft MSFT from Underperform to Neutral and raised the price target from $35 to $47.
Bank of America analyst Kash Rangan said that Microsoft reported better-than-expected results for the fourth quarter of 2014. He noted that he has "puzzlingly and painfully" conceded that the company's short-term stock reaction will be driven by directional comments on cost cuts, Nokia accretion in fiscal 2016 and Bing being set to break-even in fiscal 2016.
Looking ahead, Rangan is estimating EPS for 2015-2017 of $2.68, $3.12 and $3.32, respectively.
Following the post-earnings note, shares of Microsoft were trading up ~2 percent in Wednesday's pre-market.
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