Deutsche Bank Cuts Price Target Following IBM's (IBM) 4c EPS Beat

Deutsche Bank maintained a Hold rating on IBM (NYSE: IBM), and cut the price target to $150.00 (from $160.00), following the company's 3Q15 earnings report. IBM reported F3Q-15 sales of $19.28B and EPS of $3.34, mixed versus the
Street at $19.6B / $3.30.

Analyst Sherri Scribner commented, "IBM reported a modest beat on EPS, but sales came in below expectations. Softer results were driven by continued market shifts in Global Business Services (GBS), weaker demand in high-end disk storage, and a slower-than anticipated close in the software transactions business. While Strategic Imperatives sales grew 27% Y/Y in the quarter, this was not enough to offset declines in the core, and IBM cut its prior FY-15 EPS guidance. We continue to see IBM as challenged by secular changes, and see additional FX headwinds as pressuring growth in FY-16. We have trimmed our estimates and PT to $150 from $160. At current levels, we see risk-reward as balanced; maintain Hold."

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 $149.22 yesterday.

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