IBM (IBM) Consensus Looks Reasonably Through 2021 - Stifel

Stifel analyst David Grossman reiterated a Buy rating and $147.00 price target on IBM (NYSE: IBM) and believes that 2H20 and 2021 consensus are reasonable given the significant tailwinds from the company's 1H rebalancing actions.

The analyst stated "we continue to believe stabilization of GTS revenue growth (outsourcing unit, 34% of revenue and declining 4%), and perhaps some abatement of the cyclical factors impacting legacy IBM software portfolio (27% of revenue, declining ~7% in 1Q20 versus +1% in 2H19) could help this stock re-rate higher. The 5.5% dividend yield and stable FCF should be sufficient to support the current stock price and creates an interesting opportunity for value/income oriented investors looking for a defensive stock with potential catalysts".

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 $117.58 yesterday.

You May Also Be Interested In

• Stifel on EyePoint Inc. (EYPT): 'we think these data bode well for LUCIA (expected October) barring another unusual asymmetry'
• BofA Securities Starts Kanzhun Ltd. (BZ) at Neutral
• Enovix Corporation (ENVX) PT Lowered to $5 at BofA Securities