Story updated at 9:50 a.m. to reflect market activity.
Microsoft gained 0.4% to $42.32 in morning trading.
The firm reiterated its "buy" rating for the Windows maker. New CEO Satya Nadella will likely announce more details on his strategic vision and new earnings initiatives during the July 22 earnings report according to Nomura analysts Rick Sherlund, Kashif Sheikhm, and Frederick Grieb.
"We expect bold moves and organizational change intended to restore a culture of innovation," the analysts wrote. "Our expectation is for a substantial ($1 billion plus) charge to mitigate the Nokia acquisition risk and focus the strategic direction of the company away from the previous devices/services strategy and drive the company into a new generation of productivity apps and services and pursue the subscription and cloud businesses of Office 365 and a more aggressive push into PaaS (platform-as-a-service)."
Must read: Warren Buffett's 25 Favorite Stocks
Separately, TheStreet Ratings team rates MICROSOFT CORP as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:
"We rate MICROSOFT CORP (MSFT) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, notable return on equity, reasonable valuation levels, solid stock price performance and good cash flow from operations. We feel these strengths outweigh the fact that the company has had sub par growth in net income."