Nomura Securities analyst Rick Sherlund upgraded rankings of Microsoft from Hold to Buy being hopeful that ValueAct, less-than-1-percent position owner in Microsoft, will maintain a shake-up and grab Microsoft shares. Sherlund followed Redmond, Wash.-based Microsoft for several years, previously at Goldman Sachs and currently at Nomura, is focusing on ValueAct, a shareholder activist, managed to get a $2 billion stake in Microsoft in April this year.
In a research note early Thursday, Sherlund wrote in a research page on Thursday that Microsoft still sees slips as tablets dominate PCs. He also said that Microsoft’s enterprise business and the cash flows are the strong points which attract activists.
Microsoft CEO Steve Ballmer has been highly criticized by opponents claiming that under his supervision, the company’s stock has shown downfall, but he has still kept the pace. The main reason for this benevolence is being the liking of Microsoft co-founder and chairman, and long-time pal, Bill Gates.
Microsoft’s analyst meeting will be held on September 19.
Regarding ValueAct’s potential opportunity to get a change, Sherlund quoted Archimedes: “Give me a place to stand and I can move the world.”
Microsoft’s technology stocks saw a rise with Apple and Yahoo also in the run while Hewlett-Packard’s shares slumped almost up to 10 percent.