Markets & Finance

Analyst Actions: Microsoft, Deckers Outdoor, VistaPrint


Opinions from Wall Street analysts on Friday

From Standard & Poor's Equity ResearchBEAR STEARNS RAISES ESTIMATES FOR MICROSOFT

Bear Stearns analyst John DiFucci says Microsoft's (MSFT) first quarter results handily beat estimates. He ties revenue upside to strong PC growth, decline in piracy rate in emerging markets, which management thinks will continue to decline throughout fiscal year 2008 (something he did not expect at this time).

He says Microsoft also experienced significant growth in three most important segments: Client, Server & Tools and Microsoft Business Division. He raises $1.72 fiscal year 2008 (June) EPS view to $1.80, $1.91 fiscal year 2009 EPS to $1.96.

However, he believes there still exists meaningful risk at price levels attained after hours last night. He keeps peer perform, $29-$35 discounted cash flow-based valuation.

WEDBUSH RAISES TARGET FOR DECKERS OUTDOOR

Wedbush analyst Jeff Mintz says Deckers Outdoor's (DECK) $1.47 third quarter EPS significantly beat his $1.27 estimate, consensus $1.21, while revenue of $129 million was $10 million above both his and consensus expectations.

He notes guidance was increased, but given the strength of the compant's UGG product line, he believes DECK continues to guide conservatively. He says UGG sales continue to exceed expectations, and holiday sales should be as strong as they were last year, according to his channel checks.

Mintz raises $4.25 2007 EPS estimate to $4.66, $5.23 for 2008 to $5.71. He also sees the Teva product line picking up steam and growing strongly by 2009. He ups $119 target price to $137. Rates buy.

NEEDHAM UPGRADES VISTAPRINT TO BUY FROM HOLD

Needham anayst Mark May says VistaPrint (VPRT) first quarter results were better than his estimates. He notes revenue upside was largely due to a surprise acceleration in new customer growth, and margin and capex datapoints were positive.

May says given his consistent positive view of the company's addressable market, its competitive positioning, its rate of growth and the current valuation, he upgrades stock. He has a $50 12-month target price. Given his forecast for a 3-year earnings CAGR of 30%, he believes using a 30 multiple on his calendar year 2009 adjusted EPS estimate is reasonable for setting a price target.


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