Microsoft has been slapped with its second downgrade in two days.
Sasa Zorovic at Janney Capital rates Microsoft neutral, down from a buy, in a new note, says Eric Savitz at Barron’s.
He’s lowering his price target to $28 from $30.
- It’s “difficult” for Microsoft to catch up in mobile, and that’s where computing is going.
- Windows Phone 7 may be a “tweener: a phone that is less appealing than the iPhone and more expensive than Android.”
- Bing is “growing too slowly to matter.” And Microsoft is burning money online “at an astounding clip.”
- The price for Office might have to come down thanks to Google Docs.
- Finally, Microsoft can’t keep or attract talent: “The Seattle area—as well as a number of other locations where its campuses are located—offers significant other opportunities to the talent Microsoft is looking to recruit and retain. Microsoft may find it increasingly more difficult to compete in the marketplace for talent, in our view.”
Yesterday Goldman downgraded Microsoft, citing tablets and mobile concerns.
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