UPDATE: UBS Investment Research Initiates International Business Machines with Neutral, $205 PT on Full Valuation

UBS Investment Research initiated its coverage on International Business Machines IBM with a Buy rating and a price target of $205. UBS Investment Research commented, "IBM is the only computer company to succeed in non-consecutive tech waves thanks to its excellent strategy and renewed thought leadership. Management shifted revenue from hardware to services to software while jettisoning commoditizing businesses. … We expect the stock to rest following its substantial outperformance. IBM sells at the upper end of the EV/FCF range relative to the group and its history. Also, our DCF indicates that the price already discounts margin expansion." International Business Machines closed at $186.26 on Tuesday.