UPDATE: Stifel Nicolaus Increases PT to $35 on International Business Machines

Stifel Nicolaus raises its price target from $210 to $230 on International Business Machines IBM as EPS remains positioned for upward revisions. Stifel Nicolaus notes, "1Q revenue of $24.7bn (+1% cc) was in line; EPS of $2.78 beat by $0.13/sh (no quarterly guidance) and the company increased 2012 EPS guidance from “at least $14.85” to “at least $15”, slightly above consensus of $14.94, and reflecting the benefit of a lower tax rate. Some may argue that the EPS beat/raise was driven exclusively by the lower tax rate; however, the company views taxes like any other operating expense and as an offset to the 1Q headcount rebalancing charge of a comparable amount. The stock traded off 2.5% in aftermarket trading most likely reflecting several factors including recent strength and an in-line top line result. That said, we remain opportunistic buyers of this stock with a 12-month target price of $230, or 13.5x our 2012 EPS estimate of $17." IBM closed at $207.45 yesterday.