Analysts Downgrade Microsoft

Analysts Downgrade Microsoft

by November 26, 2001

From Core:

Investment firm Salomon Smith Barney has downgraded Microsoft from ‘outperform’ to ‘neutral’ status. According to analyst Richard Gardner, Microsoft shares are trading a very high levels given the current global economic situation. “We are comfortable with the company’s ability to achieve current estimates for the fourth quarter,” Gardner said. “We are more concerned about March and June quarter estimates given management’s expectation for a sharp increase in Xbox related revenue from roughly $350 million in the fourth quarter to $600 million in the first quarter to $800 million in second quarter.” Salomon has set a target price of $60 on Microsoft shares, though the company is currently trading at approximately $65/share.