IBM (IBM) PT, Estimates Cut at BofA/Merrill Lynch Post Q3

BofA/Merrill Lynch analyst Wamsi Mohan lowered his price target on Neutral-rated IBM (NYSE: IBM) to $185.00 (from $200.00) following weak Q3 results and lower guidance. The firm sees shares range-bound.

Mohan commented, "In our opinion, the reset in expectations provides an opportunity for IBM to redefine the broader strategy without the rigidity of near term targets. We expect a detailed business strategy update at the Analyst day in 2015 but near term headwinds will likely keep the stock range bound and we remain Neutral."

The firm lowered C4Q14 revenue and EPS from $26.5bn/$6.71 to $25.7bn/$5.47. C2015 revenue and EPS go from $95.0bn/$19.75 to $92.8bn/$17.37, while C2016 revenue and EPS go from $95.2bn/$21.13 to $93.1bn/$18.65.

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 $169.10 yesterday.

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