UBS Maintains a 'Neutral' on IBM (IBM); Good Signings and 2012 EPS Guidance

UBS maintains a 'Neutral' on IBM (NYSE: IBM) price target raised from $180 to $185.

UBS analyst said, "IBM reported Q4 revs of $29.5bn, below our and Street $29.9bn/$29.7bn est. as software and svcs were below our est. However, EPS of $4.71 was $0.09 better than estimates due to lower opex, other expense and share count...Surprisingly, IBM provided good EPS guidance for FY12 considering an uncertain macro environment. Although majority of IBM’s revs are annuity-based, guidance is dependent on strength in 2H of the year where we think visibility is unclear."

"We now model IBM’s FY12 revenues to be $112.9bn, representing 5.7% annual growth vs. prior $112.3bn. We increase our EPS est. to $14.95 from $14.85 on better margins and lower share count."

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 $180.52 yesterday.

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