International Business Machines Corp. Stock Rating Lowered by Barclays Capital (IBM)
International Business Machines Corp. (NYSE:IBM) was downgraded by investment analysts at Barclays Capital from an “overweight” rating to an “equal weight” rating in a note issued to investors on Monday, AmericanBankingNews.com reports. They currently have a $190.00 price target on the stock, down from their previous price target of $215.00. Barclays Capital’s target price would indicate a potential upside of 3.20% from the company’s current price.
The analysts wrote, “It is increasingly clear to us that investors will evaluate IBM on cash flow more than earnings until revenue starts to grow meaningfully. As a result, we are moving our rating for IBM to Equal Weight from Overweight even though shares have been down over the past several months. The mainframe ‘catalyst’ has passed and positive benefits from analytics seem to be offset by secular shits to SaaS and Cloud, which seem to adversely impact all of IBM’s segments in some way. We have recently performed several surveys that show the disruptive impact of cloud and SaaS are only in the early innings and are set to be more disruptive in 2014 for our whole sector.”
Shares of International Business Machines Corp. (NYSE:IBM) traded down 0.64% during mid-day trading on Monday, hitting $182.92. 638,918 shares of the company’s stock traded hands. International Business Machines Corp. has a one year low of $181.10 and a one year high of $215.90. The stock has a 50-day moving average of $186.8 and a 200-day moving average of $197.4. The company has a market cap of $200.4 billion and a P/E ratio of 13.07.
International Business Machines Corp. (NYSE:IBM) last issued its quarterly earnings data on Wednesday, July 17th. The company reported $3.91 earnings per share for the quarter, beating the analysts’ consensus estimate of $3.77 by $0.14. The company had revenue of $24.92 billion for the quarter, compared to the consensus estimate of $25.39 billion. During the same quarter last year, the company posted $3.51 earnings per share. International Business Machines Corp.’s revenue was down 3.3% compared to the same quarter last year.
IBM has been the subject of a number of other recent research reports. Analysts at TheStreet reiterated a “buy” rating on shares of International Business Machines Corp. in a research note to investors on Friday, September 27th. Separately, analysts at Cantor Fitzgerald initiated coverage on shares of International Business Machines Corp. in a research note to investors on Thursday, September 19th. They set a “buy” rating and a $220.00 price target on the stock. Two research analysts have rated the stock with a sell rating, twelve have issued a hold rating, nine have issued a buy rating and one has issued a strong buy rating to the company. The company has an average rating of “Hold” and an average target price of $216.67.
International Business Machines Corporation (NYSE:IBM) is an information technology (IT) company.
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