UPDATE: IBM (IBM) Prints a Second Quarter of Revenue Growth Acceleration, PT to $157 at Morgan Stanley
Morgan Stanley analyst Erik Woodring raised the price target on IBM (NYSE: IBM ) to $157.00 (from $150.00) while maintaining a Overweight rating after reporting growth acceleration in 1Q22 - to 6% Y/Y growth in constant currency, up from 5% in 4Q21 and 1% in 2021.
The analyst stated "whereas last quarter's revenue outperformance was driven primarily by core Infrastructure (i.e. perceived as a lower quality beat), the upside this quarter came from more broad-based upside across all 3 segments, which we believe the market will interpret more positively. While this quarter alone won’t convince the market of sustainable mid-single digit growth over multiple years, we do believe that stringing together consecutive quarters of outperformance illustrates that there is a clearer path to accelerating Y/Y growth in 2022, which was corroborated by management's stronger 2022 revenue guide, a key factor underpinning our Overweight thesis".