BMO Capital Maintains a 'Market Perform' on IBM (IBM); Quarter Missed, But Long-Term Targets Intact
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Price: $208.44 --0%
Rating Summary:
8 Buy, 15 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 14 | Down: 31 | New: 7
Rating Summary:
8 Buy, 15 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 14 | Down: 31 | New: 7
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BMO Capital maintains a 'Market Perform' on IBM (NYSE: IBM) price target raised from $192 to $200.
Analyst, Keith Bachman, said, "IBM reported a disappointing March quarter. Total revenues of $24.67billion missed our/consensus estimates of $24.84 billion/$24.82 billion. Further, EPS beat of $0.09 relative to our estimate of $2.69 was driven by a lower tax rate, which helped EPS by $0.13."
"Revenue growth was only 1% y/y in CC in the March quarter, and probably negative without acquisitions. With that said, we believe that bulls own the stock for the confidence in the progression to $20 in EPS by 2015, and the sale of the POS division, with a ~$500 million gain to apply to earnings, combined with solid margin performance, suggest that the $20 story is still intact. Hence, we don't see a sustained negative impact to IBM from weak revenues."
FY12 EPS estimate raised $0.10 to $15.02 and FY13 raised $0.12 to $16.67.
For an analyst ratings summary and ratings history on IBM click here. For more ratings news on IBM click here.
Shares of IBM closed at $207.45 yesterday, with a 52 week range of $157.13-$210.69.
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Analyst, Keith Bachman, said, "IBM reported a disappointing March quarter. Total revenues of $24.67billion missed our/consensus estimates of $24.84 billion/$24.82 billion. Further, EPS beat of $0.09 relative to our estimate of $2.69 was driven by a lower tax rate, which helped EPS by $0.13."
"Revenue growth was only 1% y/y in CC in the March quarter, and probably negative without acquisitions. With that said, we believe that bulls own the stock for the confidence in the progression to $20 in EPS by 2015, and the sale of the POS division, with a ~$500 million gain to apply to earnings, combined with solid margin performance, suggest that the $20 story is still intact. Hence, we don't see a sustained negative impact to IBM from weak revenues."
FY12 EPS estimate raised $0.10 to $15.02 and FY13 raised $0.12 to $16.67.
For an analyst ratings summary and ratings history on IBM click here. For more ratings news on IBM click here.
Shares of IBM closed at $207.45 yesterday, with a 52 week range of $157.13-$210.69.
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