UPDATE: Deutsche Bank Raises PT to $240 on International Business Machines on Near-Term Outlook

Deutsche Bank reiterated its Buy rating on International Business Machines

and raised its price target from $225 to $240. Deutsche Bank commented, "IBM's recently refreshed mainframe and a POWER7+ server refresh in early October should support re-accelerating hardware growth in the near term. The HW refresh should also drive improving growth in Services and Software revenue (5-6% growth historically over past 5 cycles) and drive improving margins. We believe these factors are not reflected in consensus estimates and we raise our FY13 EPS est to $17 (vs. prior $16.60 and raise our PT to $240. With IBM currently trading at 13x FY13E we view shares as attractively valued." International Business Machines closed at $207.45 on Friday.