In a note published Friday morning, Bank of America analyst Wamsi Mohan reinstated coverage of International Business Machines Corp. IBM with a Neutral rating and a price objective of $200.
Mohan commented, "IBM's strategy of embracing the changes in IT to a more "on demand" model is strategically sound but creates near term headwinds to legacy businesses."
He added the firm views IBM as a long-term winner, but remains cautious on the reset of FX estimates and expectations for a "steep ramp" in the second half of 2014.
Looking to the IBM's research, Mohan noted the company is driving innovation in Cloud, Social, Mobile and Big Data/Analytics, which he views as secular trends that will gain a higher share of IT spend.
Shares of IBM were up about 1 percent in the pre-market session.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
date | ticker | name | Price Target | Upside/Downside | Recommendation | Firm |
---|
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.