IBM (IBM) Is The 'Apple' of Enterprise

Competing against a company like Apple (NASDAQ: AAPL) on its turf is not an easy venture. While a few competitors like Google (NASDAQ: GOOG) and Samsung have ridden its coattails, others like RIM have been trampled. Similarly, companies seeking to compete with IBM (NYSE: IBM) are learning the hard way that its model is not an easy one to replicate, according to Stern Agee analyst Shaw Wu.

"We believe one of the most important lessons in recent years is that it is much more difficult than consensus thinking to replicate IBM's unique business model where it combines hardware, software, and services and broad geographic reach in addressing the enterprise market,” said Wu.

"Many companies have tried to replicate IBM without much success and we think this helps prove that replicating IBM is not easy, similar to it not being easy to replicate AAPL."

Sterne Agee says IBM is one of the firm's top picks for 2013.

"One of the things we like about IBM is that 60% of its profits are recurring. This is due to its large software (23% of revenue) and services (58%) businesses that have longer-term multi-year contracts. For this reason, its results have been less volatile and more predictable than most," added the analyst.

Sterne Agee has a Buy rating on IBM (NYSE: IBM) with a price target of $230.00.

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 $195.08 yesterday.

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