Wells Fargo Downgrades IBM (IBM) to Market Perform; Limited Material EPS Upside and Multiple Expansion

Wells Fargo downgraded IBM (NYSE: IBM) from Outperform to Market Perform. Valuation range $170-175.

Wells analyst says, "We are downgrading shares of IBM as we think the potential for material EPS upside and multiple expansion is limited. In our view, the shares are fairly valued at current levels and accurately reflect IBM’s strong market position, stable business model, and modest upward bias to estimates. We are maintaining our valuation range of $170-175, reflecting an 11-12x P/E multiple on our 2012E EPS of $14.60, which is very close to the current stock price. Accordingly we believe a Market Perform rating is more appropriate at this time."

For more ratings news on IBM click here and for the rating history of IBM click here.

Shares of IBM closed at $177.71 yesterday.

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