×

Bold Call Of The Day – Microsoft

UBS just initiated coverage of Microsoft with a ‘buy’ rating. Although the stock has soared about 50% over the last 6 months analyst Brent Thill thinks shares still have room to run.

He has a $34 price target on the stock largely because he expects Microsoft to be a big beneficiary of a PC upgrade cycle, which he estimates is coming in 2010.

In other words, Thill believes there’s pent up demand in Corporate America because companies have been reluctant to spend on IT this year. However, he thinks the release of Windows 7 will be the catalyst to trigger new tech spending, as companies upgrade their operating systems to make themselves more efficient.

In fact, Thill expects PC and server sales to increase by as much as 10% next year – with that trend giving software sales a boost, broadly. Although Microsoft is the biggest beneficiary it’s also worth noting Thill has buy ratings on Autodesk, Oracle and Adobe, according to Barron's.






______________________________________________________
Got something to to say? Send us an e-mail at fastmoney-web@cnbc.com and your comment might be posted on the Rapid Recap. If you'd prefer to make a comment but not have it published on our website send those e-mails to fastmoney@cnbc.com.

Trader disclosure: On November 13th, 2009, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Adami Owns (AGU), (BTU), (C), (GS), (INTC), (MSFT), (NUE); Grasso Owns (AAPL), (ABK), (ASTM), (BAC), (BGP), (C), (COST), (FAZ), (PFE), (MRK), (V), (WMT); Finerman's Firm Owns (BAC) Preferred, (BAC), (BAC) Call Spreads; Finerman Owns (BAC) Preferred, (BAC; Finerman's Firm Owns (FLS), Is Short (FLS) Calls; Finerman Owns (FLS); Finerman's Firm Owns (MSFT), (NOK), (PLCE), (TGT), (WMT); Finerman's Firm Is Short (USO), (IJR), (MDY), (IWM), (UNG); Finerman's Firm And Finerman Own (WFC) Preferred; Finerman's Firm Owns (M); Finerman's Firm Owns (RIG), Is Short (RIG) Calls; Finerman Owns (RIG); Terranova Owns Crude Oil Dec. Futures; Terranova Owns (GS), (JPM), (SU), (AAPL), (GOOG), (JCP); Terranova Is Short (ANF)

For Joe Terranova
Terranova Works For (VRTS)
Terranova Is Chief Market Strategist Of Virtus Investment Partners, Ltd.
Virtus Investment Partners Owns More Than 1% Of (CLB)
Virtus Investment Partners Owns More Than 1% Of (DLR)
Virtus Investment Partners Owns More Than 1% Of (EXR)
Virtus Investment Partners Owns More Than 1% Of (IGE)
Virtus Investment Partners Owns More Than 1% Of (XLY)
Virtus Investment Partners Owns More Than 1% Of (DBC)
Virtus Investment Partners Owns More Than 1% Of (DBV)
Virtus Investment Partners Owns More Than 1% Of (UA)

For Steve Grasso:
Stuart Frankel And Its Partners Own (CMCSK)
Stuart Frankel And Its Partners Own (CUBA)
Stuart Frankel And Its Partners Own (GERN)
Stuart Frankel And Its Partners Own (HSPO)
Stuart Frankel And Its Partners Own (NWS.A)
Stuart Frankel And Its Partners Own (NXST)
Stuart Frankel And Its Partners Own (NYX)
Stuart Frankel And Its Partners Own (PDE)
Stuart Frankel And Its Partners Own (PRST)
Stuart Frankel And Its Partners Own (RDC)
Stuart Frankel And Its Partners Own (ROK)
Stuart Frankel And Its Partners Own (TLM)
Stuart Frankel And Its Partners Own (XRX)
Stuart Frankel And Its Partners Own (SDS)
Stuart Frankel And Its Partners Are Short (QQQQ)
Stuart Frankel And Its Partners Are Short (CL)

For Todd Gordon
GAIN Capital's Managed Accounts Own Australian Dollar, Are Short U.S. Dollar

For Brent Thill
(MSFT) Is Or In Past 12 Months Has Been An Investment Banking Client Of UBS Securities LLC
(MSFT) Is Or In Past 12 Months Has Been A Non-Securities Client Of UBS Securities LLC
UBS Securities LLC Has Received Compensation From (MSFT) In Past 12 Months

For Finerman:
On 10/12/09 Finerman's Firm Owned (WMT)





CNBC.com with wires