Microsoft is scheduled to report fiscal third-quarter earnings after-the-bell Thursday. Analysts expect the tech giant to report earnings of 56 cents a share on revenue of $16.19 billion, according to a consensus from Thomson Reuters.
Pritchard said he is concerned about the "large overhang" over the Microsoft Windows business due to non-PC devices that have been selling well lately.
“[However,] it's an issue that's hard to be resolved in an earnings report—it’s something that comes with product introductions later on in the year,” said Pritchard.
As consumers continue to flock to Apple’s iPad, it’s important for Microsoft to step up its game on the tablet front, said Pritchard.
“They’ve got Windows Next (a tablet-friendly Windows 8 OS) coming sometime in 2012 and that in terms is their entry into the tablet market,” he explained. “You’ll probably see a beta version of that product sometime in the fall and that will be the next milestone for that business and that issue.”
Pritchard has a $35 price target on the Dow component.
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- Pritchard's Previous Appearance on CNBC (Mar. 24, 2011)
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Pritchard has investment banking clients.
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