Credit Suisse Maintains Outperform On Microsoft After Earnings

Credit Suisse is out with a research report on Microsoft MSFT after it reported earnings last night. It has an Outperform rating and a $36 price target on shares. In a note to clients, Credit Suisse writes, "Even when fully-taxing the company's international cash balance and forward cash flow, subtracting the acquisition price of Skype, and adding no profit contribution from Skype, Microsoft trades at an unlevered free cash flow yield of ~12%, a yield higher than debt from Portugal, Ireland, Italy, and Spain. We maintain our Outperform rating and our target price of $36." Shares of MSFT are down 24 cents in pre-market trading to $26.85, a loss of 0.9%.