Wells Fargo & Co. Reiterates “Market Perform” Rating for International Business Machines Corp. (IBM)
International Business Machines Corp. (NYSE:IBM)‘s stock had its “market perform” rating restated by analysts at Wells Fargo & Co. in a research report issued to clients and investors on Wednesday, AnalystRatingsNetwork.com reports.
The analysts wrote, “While non-GAAP EPS of $6.13 was better than our and consensus estimate of $6.00, the bulk of the upside was from lower taxes ($0.78 benefit) and lower operating expenses,” the report noted. “2014 EPS guidance of at least $18.00 is in line with our $18.02 estimate (Street: $18.03), but is likely to be driven mainly by cost cutting initiatives (expects to take an additional workforce rebalancing charge of about $1B in Q1). While we lower our 2014 revenue estimate to $98.6B from $101.0B, we maintain our EPS estimate of $18.02 to reflect potential benefits from cost savings. We introduce our FY2015 EPS estimate of $19.62.” Some highlights from the report included: -”Bottom line: IBM continues to face challenges in its businesses, particularly hardware segment, limiting revenue growth and while one-time non-operational items (taxes, share repurchases, etc.) have helped drive EPS growth, we believe these are unsustainable over a longer period of time.”-”We view IBM as a fairly defensive stock given its historical track record of meeting and exceeding guidance, return of solid cash flow in the form of share repurchases and dividends, recurring revenue streams, and given that, among its peers, it is furthest along in offering complete solutions.”
Other equities research analysts have also recently issued reports about the stock. Analysts at Morgan Stanley reiterated an “in-line” rating on shares of International Business Machines Corp. in a research note to investors on Wednesday. Separately, analysts at Credit Agricole upgraded shares of International Business Machines Corp. from an “outperform” rating to a “buy” rating in a research note to investors on Friday, January 17th. They now have a $225.00 price target on the stock, up previously from $215.00. Finally, analysts at TheStreet reiterated a “buy” rating on shares of International Business Machines Corp. in a research note to investors on Tuesday, January 14th. One equities research analyst has rated the stock with a sell rating, seventeen have assigned a hold rating, nine have given a buy rating and one has issued a strong buy rating to the company. The stock presently has an average rating of “Hold” and an average price target of $201.25.
International Business Machines Corp. (NYSE:IBM) traded down 3.85% on Wednesday, hitting $181.18. 7,479,272 shares of the company’s stock traded hands. International Business Machines Corp. has a one year low of $172.57 and a one year high of $215.90. The stock’s 50-day moving average is $182. and its 200-day moving average is $185.2. The company has a market cap of $196.7 billion and a price-to-earnings ratio of 13.05.
International Business Machines Corp. (NYSE:IBM) last announced its earnings results on Tuesday, January 21st. The company reported $6.13 earnings per share (EPS) for the quarter, beating the consensus estimate of $5.99 by $0.14. The company had revenue of $27.70 billion for the quarter, compared to the consensus estimate of $28.26 billion. During the same quarter in the previous year, the company posted $5.39 earnings per share. The company’s revenue for the quarter was down 5.5% on a year-over-year basis. On average, analysts predict that International Business Machines Corp. will post $16.88 earnings per share for the current fiscal year.
International Business Machines Corporation (NYSE:IBM) is an information technology (IT) company.
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