Breaking News! The firm maintained an Outperform rating and price target of $37 on Microsoft.
Oppenheimer analyst Shaul Eyal is calling Microsoft's (Masdaq: MSFT) deal to acquire Nokia's (NYSE: NOK) device and services business for $7.2 billion a "hail mary pass."
"While the transaction does not come as a full surprise it does remove an uncertainty enabling investors to weigh the chance of getting it right this time," Eyal states. "We view the transaction as a MSFT call option on mobile, whereby some positive reward could be reaped from the money entered. If the option expires then (hopefully) not too much damage will have been done. While the transaction poses some near-term integration risk the following near-term catalysts could outweigh it: 1. potential dividend hike; 2. new external CEO with potentially fresh strategic thinking; 3. shareholder activism (ValueAct)."
The firm maintained an Outperform rating and price target of $37 on Microsoft.