Canaccord Genuity Morning Coffee on IBM (IBM): You’re My Boy, Blue!
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Price: $233.69 --0%
Rating Summary:
19 Buy, 22 Hold, 5 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 6 | Down: 5 | New: 17
Rating Summary:
19 Buy, 22 Hold, 5 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 6 | Down: 5 | New: 17
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Canaccord Genuity Morning Coffee on IBM (NYSE: IBM): You’re my boy, Blue!
Canaccord Genuity Technology Analyst Eyal Ofir remains neutral on IBM but is raising his target price following Q1/12 results that were in line on the top line, but beat expectations on the bottom line. Overall, Ofir says the results were solid from top to bottom, with only Global Business Services showing a hint of weakness. Revenue was reported at $24.7 billion (flat year-over-year), in line with his and consensus estimate of $24.8 billion. Adjusted EPS was reported at $2.78 in the quarter, compared with Ofir’s estimate of $2.63 and the consensus estimate of $2.66. Management remains bullish that while top-line growth may be more challenging within the services business, profitability metrics continue to climb. 2012 adjusted EPS guidance was raised to $15.00 or better from $14.85, above consensus of $14.92 and Ofir’s estimate of $14.90. When factoring in the recent rise in the share price, he believes the EPS guidance increase may have come in a little short for the Street, and hence he could expect a near-term pullback. Overall, Ofir continues to like management’s execution strategy but is waiting for improved entry points.
Canaccord Genuity Technology Analyst Eyal Ofir remains neutral on IBM but is raising his target price following Q1/12 results that were in line on the top line, but beat expectations on the bottom line. Overall, Ofir says the results were solid from top to bottom, with only Global Business Services showing a hint of weakness. Revenue was reported at $24.7 billion (flat year-over-year), in line with his and consensus estimate of $24.8 billion. Adjusted EPS was reported at $2.78 in the quarter, compared with Ofir’s estimate of $2.63 and the consensus estimate of $2.66. Management remains bullish that while top-line growth may be more challenging within the services business, profitability metrics continue to climb. 2012 adjusted EPS guidance was raised to $15.00 or better from $14.85, above consensus of $14.92 and Ofir’s estimate of $14.90. When factoring in the recent rise in the share price, he believes the EPS guidance increase may have come in a little short for the Street, and hence he could expect a near-term pullback. Overall, Ofir continues to like management’s execution strategy but is waiting for improved entry points.
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