NEW YORK (TheStreet) -- Shares of Microsoft Corp. (MSFT) are declining 0.41% to $45.72 after Jefferies reduced its 2016 earnings estimates to $1.94 per share from $1.96, with 2017 earnings estimates lowered to $2.47 from $2.49 per share.
The firm maintained its "underperform" rating and a price target of $38 on the stock.
PC industry revenues are expected to stay flat, implying more lower-end PCs and lower ASPs (Active Server Pages) for Microsoft, Jefferies noted.
"We continue to see downside risks to PC forecasts and expect the PC market to stay 'lower for longer'," Jefferies analysts said.
Additionally, Microsoft believed that Windows 10 revenue will be deferred and recognized over a period of time; however, the firm does not see the underlying economics of Windows have changed and believes that PC market is still challenged, Jefferies added.
Microsoft is engaged in developing, licensing and supporting a range of software, hardware and online advertising products and services.
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 revenue growth, reasonable valuation levels, largely solid financial position with reasonable debt levels by most measures, solid stock price performance and expanding profit margins. We feel its strengths outweigh the fact that the company shows weak operating cash flow."