Cantor Fitzgerald Remains Bullish Following 'Healthy' 2Q Results From IBM (IBM)

Cantor Fitzgerald reiterated a Buy rating and $198.00 price target on IBM (NYSE: IBM) following its 2Q15 earnings results. IBM reported sales of $20.81 billion, compared with $20.9B consensus. Analyst Brian White views the performance as "healthy", relative to previous quarterly reports from the past 12-18 months.

White commented, "In our view, IBM delivered a healthy 2Q:15 performance relative to other quarterly reports over the past 12-18 months and the company reiterated its EPS outlook for 2015 but with a back-end bias. Although the stock was under selling pressure in after-hours trading last night, IBM has risen nearly 7% from the intra-day low of two weeks ago and has a history of falling after quarterly reports over the past 18 months. Given skepticism around this turnaround and continued negative sentiment around IBM, the stock is trading at just 10.6x our CY:16 EPS estimate with an attractive 3% dividend yield and our model continues to suggest IBM's sales cycle bottomed out in 2Q:15 (and operating profit cycle bottomed in 4Q:14). We are fine tuning our EPS projections and reiterating our BUY rating."

White also added, "we are trimming our revenue estimate to $83.0 billion from $83.9 billion and adjusting our EPS forecast to $15.75 from $15.88."

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 $173.22 yesterday.

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