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Goldman Sachs downgrades Microsoft’s stock, says they will ‘gradually deteriorate’ if they don’t change
RON EMAIL @RONWINBETA APR 12TH, 2013 IN LATEST NEWS

Microsoft just cant catch a break these days. But negative or positive press is a result of being the software giant. According to a new report, Goldman Sachs has downgraded Microsoft’s market share from “hold” to “sell.”

Heather Bellini, an analyst at Goldman Sachs, is recommending that investors sell their Microsoft stock and downgraded the software giant’s stock from neutral (hold) to a negative rating (sell). Bellini believes Microsoft will gradually deteriorate if they don’t change their direction right away.

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Goldman Sachs on Microsoft: Sell now
JULIE BORT APR 1, 2015, 11.29 PM

Microsoft's stock is trading at about $40, coming slightly back down earth since November, when it reached a 14-year high of about $50.
And it's time to sell, warns Goldman Sachs in a scathing research note on Tuesday.

The Goldman Sachs team, led by analyst Heather Bellini, believe the stock will drop to $38 within the next 12 months.

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Goldman Sachs on Microsoft: 'We Were Wrong'

By Luke Kawa
18 December 2015, 19:33 GMT+5:30

Goldman Sachs is throwing in the towel on its bearish stance on Microsoft, upgrading its shares to "neutral "and boosting its 12-month price target to $57 from $45 on Friday.

The technology company has vastly outperformed the S&P 500 since analysts downgraded it to "sell" in April 2013:

In a note to clients entitled "Righting a Wrong," analysts led by Heather Bellini explain what they missed.

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"We upgrade Microsoft to Neutral from Sell. Since its addition to the Sell list on 4/11/2013, Microsoft is +84 percent vs. the S&P +29 percent. Despite out year estimates consistently compressing, we failed to appreciate that the stock would disconnect from downward EPS revisions, and the significant upward re-rating of the multiple driven by Microsoft’s transition to the cloud (Office 365 and Azure). We were wrong. On average, out year consensus EPS [earnings-per-share] estimates have declined 11 percent in fiscal-year 2015 and 13 percent in fiscal-year 2016 from one year before the beginning of the fiscal-year, yet during that time Microsoft’s NTM P/E [next 12 months price-to-earnings ratio] multiple has increased from 10x to 20x."