There have numerous reports through the years concerning a competitor pressing Microsoft (NASDAQ:MSFT) and its desktop franchise, but that is now becoming a reality for the first time as tablets become a real disruptor for the giant software company.
Also of concern is Microsoft and whether or not there will be a strong enterprise PC refresh cycle.
FBR noted, "We maintain our MP rating as we (1) remain skeptical about a strong enterprise PC refresh cycle, 2) believe the emergence of tablets will adversely affect the company's core desktop franchise, and (3) evaluate the company's last legitimate effort to becoming a meaningful player in the vital mobile market.
"We are raising our F3Q11 (Mar) revenue and EPS estimates to $16.5 billion and $0.59 from $16.1 billion and $0.54. We are raising our FY11 revenue and EPS estimates to $70.1 billion and $2.62 from $68.5 billion and $2.43. We are raising our FY12 revenue and EPS estimates to $73.9 billion and $2.84 from $73.1 billion and $2.67."
FBR reiterates their "Market Perform" rating on Microsoft, which was trading at $27.75, down $1.12, or 3.88 percent, as of 12:26 PM EST. FBR raised their price target on Microsoft from $28 to $30.
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