BMO Capital Maintains a 'Market Perform' on IBM (IBM); Quarter Missed, But Long-Term Targets Intact
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Price: $234.32 -1.19%
Rating Summary:
19 Buy, 22 Hold, 5 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
19 Buy, 22 Hold, 5 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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BMO Capital maintains a 'Market Perform' on IBM (NYSE: IBM) price target raised from $192 to $200.
Analyst, Keith Bachman, said, "IBM reported a disappointing March quarter. Total revenues of $24.67billion missed our/consensus estimates of $24.84 billion/$24.82 billion. Further, EPS beat of $0.09 relative to our estimate of $2.69 was driven by a lower tax rate, which helped EPS by $0.13."
"Revenue growth was only 1% y/y in CC in the March quarter, and probably negative without acquisitions. With that said, we believe that bulls own the stock for the confidence in the progression to $20 in EPS by 2015, and the sale of the POS division, with a ~$500 million gain to apply to earnings, combined with solid margin performance, suggest that the $20 story is still intact. Hence, we don't see a sustained negative impact to IBM from weak revenues."
FY12 EPS estimate raised $0.10 to $15.02 and FY13 raised $0.12 to $16.67.
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 $207.45 yesterday.
Analyst, Keith Bachman, said, "IBM reported a disappointing March quarter. Total revenues of $24.67billion missed our/consensus estimates of $24.84 billion/$24.82 billion. Further, EPS beat of $0.09 relative to our estimate of $2.69 was driven by a lower tax rate, which helped EPS by $0.13."
"Revenue growth was only 1% y/y in CC in the March quarter, and probably negative without acquisitions. With that said, we believe that bulls own the stock for the confidence in the progression to $20 in EPS by 2015, and the sale of the POS division, with a ~$500 million gain to apply to earnings, combined with solid margin performance, suggest that the $20 story is still intact. Hence, we don't see a sustained negative impact to IBM from weak revenues."
FY12 EPS estimate raised $0.10 to $15.02 and FY13 raised $0.12 to $16.67.
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 $207.45 yesterday.
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