UPDATE: J.P. Morgan Reiterates Overweight Rating, Lowers PT on IBM
In a report published Friday, J.P. Morgan & Co. reiterated its Overweight rating on IBM (NYSE: IBM), but lowered its price target from $218.00 to $215.00.
J.P. Morgan noted, “Overweight-rated IBM remains part of our ‘Big Four' alongside Apple, EMC, and NetApp, and IBM remains one of our top picks for 2012. We expect IBM's model to exhibit increasing upside potential from the software business. Software brings higher margin and also the margin-rich, recurring maintenance revenue stream. If IBM continues to deliver above-peer growth in software and the services business can hold steady, we think that investors could elevate the stock's valuation multiples, reflecting the increasing revenue and profit contribution from software. We also believe the strength in software could mean IBM spends less on acquisitions in the near to mid term, potentially freeing up cash for greater stock buyback activity or a larger quarterly dividend.”
IBM closed on Thursday at $195.70.
Latest Ratings for IBM
|Jan 2016||Credit Suisse||Maintains||Underperform|
|Jan 2016||JMP Securities||Maintains||Outperform|
© 2016 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.