Wells Fargo Sees Limited Price Appreciation For IBM

International Business Machines Corp. IBM on Monday reported its third quarter 2014 earnings.

IBM reported EPS of $3.68, missing Street estimates by 14.81 percent and reported revenue of $22.4 billion, missing estimates by $970 million.

Following the downbeat earnings, shares of IBM closed Monday’s session down 7.11 percent.

Wells Fargo analysts stated, "we believe its premium valuation relative to peers and inline with S&P 500 limits potential for significant price appreciation relative to the overall market."

Moreover, Bank of America analysts find that IBM shares are fairly priced as well.