Microsoft's Windows 8 will likely have a slow roll out until there are more touchscreen tablets and ultrabooks to run it on, Nomura Securities' head of technology research said Monday on CNBC's "Squawk on the Street."
The new operating system is designed for tablets and other touchscreen devices and will not be "terribly seductive" to anyone using a traditional mouse and keyboard, Richard Sherlund said. With few touchscreen laptops and tablets outside of Apple products, there could be some negativity surrounding Windows 8 during the quarter, the analyst warned.
Sherlund, who has a "buy" rating on Microsoft's stock, said Windows 8 and Microsoft will be a better story in 2013.
"I think as you build through 2013, you get more touch devices and the price points on ultrabook touch devices will come under $1,000."
With new and cheaper touchscreen hardware coming, Sherlund sees a big upgrade cycle and greater excitement in the PC market. That should benefit both Windows 8 shipments and Microsoft's stock.
The key will be getting corporate users and those consumers who need to use Microsoft's Office product to upgrade.
Along with the expected disappointing rollout for Windows 8, earnings could pressure Microsoft shares this week. With the PC market in decline from tablet competition, reported revenues are likely to be down 6 percent to 7 percent, Sherlund warned.
"The sentiment will get more negative, and that will be a good opportunity," he said.
Sherlund has a $37 price target on the stock, implying 25 percent potential upside.
—By CNBC.com's Justin Menza.
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A Nomura Group company expects to receive or intends to seek compensation for investment banking services from Microsoft in the next three months.