Drexel Hamilton Cuts Price Target on IBM (IBM) Following 4Q Earnings
Drexel Hamilton maintained a Buy rating on IBM (NYSE: IBM), and cut the price target to $160.00 (from $170.00), following the company's 4Q earnings report. Drexel expects that IBM will remain in transition mode in 2016; however, the company has set the EPS bar low and sentiment around the stock remains very negative. IBM reported sales of $22.06 billion that approached consensus at $22.08 billion, while pro forma EPS of $4.84 was higher than the Street at $4.81.
Analyst Brian White commented, "Last night, IBM reported 4Q:15 results that met the consensus estimates but the company provided a conservative EPS outlook for 2016. We are reducing our estimates and lowering our price target to $160 from $170."
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Shares of IBM closed at $128.11 yesterday.