Analyst gives MS shares “buy” rating, but risks exist

Here’s a bit of good business news for Microsoft: Stock analyst Sarah Friar of Goldman Sachs has given the software giant a “buy” rating. The analyst firm says that Microsoft’s powerhouse software lineup which includes Windows Server 2008, Halo 3, and Virtual Studio show a lot of promise. However, there are risks involved and the Xbox 360 could be a crucial part of it. Find out why in the full article.

Stock analyst Sarah Friar of Goldman Sachs has put Microsoft on her firm’s hot “Americas Conviction Buy List.” A “buy” rating has been tagged to Microsoft shares along with a target price of US$ 40 a pop.

Goldman Sachs reasons that Microsoft’s ever-growing portfolio of software is an encouraging sign coming into 2008. Products like Windows Server 2008 and Virtual Studio looking strong coming into the next fiscal cycle.

Sales of gaming industry powerhouse Halo 3 is also seen as an encouraging parameter. Friar says this could result in more sales for the Xbox 360 game console.

However, Goldman Sachs acknowledges that there are still very real risks in banking on Microsoft stocks. The threat of open source software offsetting the Office and Vista product lines has been evident in 2007. The firm also warns of a possible “fallout” of interest on the Xbox 360.

Via Forbes