Microsoft (Nasdaq:MSFT) Offers Compelling Risk/reward Profile

Citing the discount Microsoft (Nasdaq:MSFT) continues to trade at, Gleacher & Co. says they see a "compelling risk/reward profile" going forward, in light of a corporate refresh cycle.

Gleacher said, "We believe MSFT represents a compelling risk/reward profile as shares continue to trade at a significant discount to the company's nearest peers. In our view, MSFT's earnings have the potential for accelerated growth driven by a strong corporate PC refresh cycle and overall positive trends in the enterprise IT spending environment. With the company having provided fixed operating expense guidance for the current fiscal year, any upside in its business is likely to flow directly to the bottom line."

They also see Windows 7 being a strong catalyst for growth.

Microsoft closed Monday at $26.84, losing $0.18, or 0.67 percent. Gleacher has a price target of $35 on them.