UPDATE: UPDATE: Morgan Stanley Upgrades IBM (IBM) to Overweight, 'A Place to Hide Amid Macro Uncertainty'
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(Updated - April 14, 2022 4:14 AM EDT)
(Updated - April 13, 2022 5:20 PM EDT)
Morgan Stanley analyst Erik Woodring upgraded IBM (NYSE: IBM) from Equalweight to Overweight with a price target of $150.00 (from $147.00).
The analyst commented, "We believe IBM is positioned to outperform through 2022, given that it is a late cycle stock, the company enters new mainframe/ELA cycles in 2H, and any spin transaction outperformance historically happens post-close. Due to 50%+ recurring revenue mix, IBM historically outperforms late cycle due to lower earnings risk and less multiple compression than the rest of IT Hardware. The managed infrastructure services spin puts IBM on a path to achieve sustainable mid-single digit revenue growth, and we view management's focus on revenue growth, go-to-market, M&A, and partnerships positively. Our CIO surveys show improving IBM spending intentions, and we look for this to continue moving forward."
Shares of IBM closed at $125.98 yesterday.
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Related EntitiesMorgan Stanley, Earnings, Katy Huberty
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