The April 8th deadline is fast approaching, and soon Microsoft Corporation (NASDAQ:MSFT) will no longer provide security updates, or “patches”, for its Windows XP Operating System. Small businesses, and many ATMs, will be unprotected against viruses and cyber-attacks if their systems are not updated. As further explained by GFI Software general manager, Sergio Galindo, “It’s like expired milk. If you drink it one day after it expires, you’re OK. But after a month, the risk is exponentially greater.”
While there are many companies who will still be at risk for cyber-crimes after the deadline, Jefferies analyst Ross Macmillan is not worried about any backlash on Microsoft. In fact, Ross’s confidence in the company has led him to recommend BUY Microsoft Corporation (NASDAQ:MSFT). Ross’s recommendation followed the rumors about Microsoft announcing Office for the iPad, “We now think native Office for iPad (available through an O365 subscription) could drive $2-4 incremental value per share predominantly from the consumer market.” In just a few days, Ross’s recommendation has earned him +0.4% over S&P 500 (INDEXSP:.INX).
While Ross is just beginning to see success from his latest recommendation, his 75% success rate of Microsoft Corporation (NASDAQ:MSFT) recommendations in the past bodes well for his open recommendation. As we quickly approach the beginning of April, and as we see the end of Microsoft support for Windows XP, let’s take a look back at Ross’s past Microsoft recommendations in this week’s Throwback Thursday.
In January of this year, Ross recommended BUY Microsoft Corporation (NASDAQ:MSFT) following Q2 results. Ross noted, “Microsoft reported another strong quarter, with upside from Windows OEM and Hardware plus continued strong trends in the ‘BestCo’ Commercial assets.” Ross also argued, “With moderating declines in corporate PCs, the option value on Windows further improved. We reiterate out $42PT which assumes a perpetual 7.5% decline in Windows.” Ross earned +5.9% over S&P-500.
Ross did experience one loss of -2.9% over S&P-500 when recommending Microsoft Corporation (NASDAQ:MSFT) back in December 2013, however the recommendation he made right before this one saw a positive return. When Ross raised his HOLD to BUY Microsoft in October of 2013 he earned +5.4% over S&P-500. At the time Ross felt the company was “gaining ground in cloud computing,” and his confidence paid off in the end.
During this recommendation, Ross pointed out five key events that could create value for the company, “Transparency on “BestCo,” which should grow faster and has superior gross and operating margin characteristics; Transparency on the key cloud assets of Office 365 and Azure; The potential for higher value in Windows than our base case, especially if Intel’s competitiveness in low price/ low power devices improves; Value in IP related to the android ecosystem; and The opportunity from improved capital allocation.” His keen insight and attention to the core of Microsoft’s strength, led him to a successful recommendation.
Ross’s recommendations have earned him a spot as one of the top 100 analysts out of 2469 analysts, with a +3.8% average return and a 56% success rate of recommendations.
To continue following Ross as we enter April and move closer to the Microsoft Corporation (NASDAQ:MSFT) deadline, download TipRanks, and start making informed financial decisions with advice you can trust.