CS First Boston ugpraded Microsoft (MSFT

) to strong buy from buy.

Analyst Wendell Laidley says the company sees $0.49 EPS (according to his preliminary calculation, excluding a $3.9 billion one-time write-off) vs. his $0.43 estimate. He notes he had a $6.36 billion revenue estimate.

Laidley upgraded on expectations for an improved PC market over the next six to 12 months, higher ASPs from Windows 2000, a significant new product cycle, robust server side opportunities, near-term revenue and a longer term profit contribution from XBox and a higher recurring revenue component under Microsoft's new subscription licensing model.

He sees $1.87 EPS for fiscal 2001 (June), and $1.94 EPS for fiscal 2002. Laidley also raised his $75 target to $100.