UBS Raises Price Target on IBM (IBM) to $150; Remains Sidelined Following 1Q

UBS reiterated a Neutral rating on IBM (NYSE: IBM), and raised the price target to $150.00 (from $132.00), following the company's 1Q earnings report.

Analyst Steven Milunovich commented, "Although we miss the reporting of the software brands in favor of the new categories of Cognitive Solutions and Cloud Platform, we give IBM credit for changing the narrative. The emphasis on becoming a leader in the new category of Cognitive Computing despite Watson's immaturity helped take the stock from $120 to $150. We have seen green shoots over the last year, such as creating the strategic imperative units, shifting dollars from buyback to investments, and improved Glassdoor ratings. Still, the transformation is in the third inning. The quarter was mixed with revenue and EPS beating due to currency improvement, acquisitions, and the Japan tax rebate."

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 $152.53 yesterday.

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