UPDATE: Microsoft Downgraded at Bank of America on Lack of Momentum

In a report published by Bank of America, analyst Kash Ragan downgraded Microsoft MSFT from Buy to Neutral and lowered the price objective from $35 to $33. In the report, Bank of America noted, "Our Buy thesis was predicated on an aggressive $40bn share buyback program and the Win 7 product cycle. We were hoping that MSFT would make a bold foray with Win 8 into smartphones and tablets. Conventional product cycle wisdom dictates that the stock should peak before a Win launch (it hit $31.45 in Sept '12 before Win 8), but we remained optimistic because the limited availability of touch-based devices impaired an objective assessment of Win 8. Now, six months post launch, despite more available touch-based devices, Win 8 lacks momentum, challenging our optimism." Bank of America held a Buy rating on Microsoft since September 2008. Shares of Microsoft closed Wednesday at $28.56.