Microsoft (MSFT) on Monday released Tablet Surface. Securities research institute Trefis Team believes that if Surface Tablet performs well, Microsoft stock price is likely to surpass $40 per share.
Microsoft offers two versions of Surface Tablet, which are integrated with Windows 8 RT operating system and Windows 8 Pro operating system, respectively. The new tablet will become an important competitor of iPad and Android tablets. According to the preliminary information, Surface Tablet will have a large impact.
MSFT will not only achieve higher profits but also will provide reference for design and user experience to other Windows 8 Tablet manufacturers as well as make Windows 8 tablets as a whole more competitive, through the introduction of independent tablet PC products.
Microsoft did not disclose the price and detail parameters of Surface Tablet. Windows 8 RT version is more similar to a traditional Tablet PC while Windows 8 Pro version can be used as a notebook. Microsoft also released accessories such as Type Cover, providing external keyboard for Surface Tablet.
Microsoft did not highlight the hardware parameters of Surface, and has just launched two versions. Similar with Apple (AAPL), Microsoft primarily highlighted the user experience of Surface Tablet. Microsoft also did not release price, in order to avoid bringing about too much pricing pressure to OEM manufacturers.
Trefis Team currently set Microsoft stock price target at $40, which means that there is still 30% upward potential for Microsoft stock price. Windows 8 is expected to be a crucial product and Windows business contributes 25% of the company’s total revenue. Over the past 52 weeks, Microsoft stock price fluctuated between $23.79 and $32.95 per share, and the latest trading price is 6.83% off the peak. On the basis of the current stock price, Microsoft shares trade with a P/E ratio of 11.17 and a market cap of $257.91 billion.