Shares of Microsoft climbed for the 6th day in a row after Jefferies raised its price target on the software maker to $26 from $22 and recommended it as a buy ahead of a possibly large, rapid corporate PC upgrade cycle starting in late 2010.
Jefferies said it expects customers to upgrade directly from the Windows XP operating system to Windows 7 starting in 2010 as Microsoft ended support for Windows XP in April.
Finally, the brokerage said it expects Microsoft's stock to significantly outperform its peers and the S&P 500 index.
And CNBC's Silicon Valley Bureau Chief adds that Microsoft's new Bing search engine should also provide a tailwind for the company.
But is it all priced in?
I’m long Microsoft, reveals Joe Terranova. I think the launch of Windows 7 will line up with an economic recovery. And personally I love the Bing.
I’d be a seller, counters Tim Seymour. I think it’s all priced in.
It seems to me that trade is Yahoo!, counsels Pete Najarian as a turnaround play.