CLSA Analyst: Long-Term Investors Could Start To Build A Position In IBM At These Levels

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Although International Business Machines Corp.
IBM
has been disappointing analysts and investors since last few quarters, at its Investor's Day meeting on Thursday the company shared an optimistic outlook for the future, especially for its high growth businesses or ‘strategic imperatives' Louis Miscioscia, Managing Director at CLSA, was interviewed by CNBC at the meeting, where he explained why he is bullish on the company. "The biggest thing that obviously happened in both the September and December quarter was lowering numbers," Miscioscia said. "They missed on the software line at the end of the day that was the biggest issue and then looking out to 2015, FX is a major headwind to them at 7 percent." "But I think what you heard here today is that they are really focussed on what they call the ‘strategic imperatives' it's 25 percent of total revenue today, it grew overall double digits last year. It should grow double digits next year and should hit as per management's call $40 billion in 2018.So, they have got a lot of good things going on and I think that's what investors could focus on." IBM A Long-Term Investment When asked if this is a right time to get into the stock, Miscioscia replied, "Well, I think the issue is when you want to jump-in, if we look here and I thing coming at this analysts meeting, no one really expected that there is actually going to be good, solid financial evidence. That's only going to come out when they report the March quarter, they report the June quarter. "But here at lows for those that are more long-term investor focussed, I think that someone could start to build a position now in IBM and our price target of $175 and our Outperformance ratings is really based on a 12 month horizon."
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Posted In: CNBCMedia
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