UPDATE: Stifel Nicolaus Lowers PT on Microsoft to $32

Stifel Nicolaus is out with its report today on Microsoft MSFT lowering its PT to $32 from $37. In its report, Stifel Nicolaus writes, "We have lowered our price target to reflect the impact we think the slower economic recovery will have on Microsoft's business. Our revised 12-month target price is $32 and is based on - 1) applying a 3.3x EV/revenue to our revised FY12 revenue estimates, a slight premium to the peer group at 2.7x; 2) applying a 11.0x to our FY12 EPS estimate, a slight discount to the peer group at 11.4x; and 3) applying a 8.0x to our FY12 FCF/share estimate, a discount to the peer group at 18.1x." Stifel Nicolaus maintains Buy on MSFT. At the time of posting, shares of MSFT were trading pre-market at $24.23, up 1.04% from Monday's close.