Bank of America Merrill Lynch Maintains Buy on Microsoft

Bank of America Merrill Lynch is out with its report today on Microsoft MSFT, maintaining Buy. In a note to clients, Bank of America Merrill Lynch writes, "MSFT is at the cusp of its Windows 7 product cycle alongside the release of Windows Server 2008 R2. We see multiple levers for potential earnings upside: 1) potential Win 7 shrink wrap upgrade, 2) a possible corporate PC refresh cycle plus migration to Win 7, and 3) upside to MBD related to the Office 2010 launch in 1H:10. Moreover, opex has come down over the past year, and cuts appear to be more permanent than consensus estimates reflect." Bank of America Merrill Lynch maintains a $38 PO on MSFT. At the time of posting, shares of MSFT were trading pre-market at $26.86, up 1.02% from Monday's close.