UPDATE: Citigroup Initiates International Business Machines at Buy on Catalysts

Citigroup initiated coverage on International Business Machines IBM with a Buy rating and a $250 price target. Citigroup commented, "Our estimates may prove to be conservative if the following occurs: 1) better-than-anticipated execution on revenue mix shift including the relatively under-appreciated shift in the services business, 2) a potential refresh of the z-Series & IBM shares have generally performed well during the initial stages of the mainframe cycle given the earnings pick up (Roughly 30-35% of IBM's revenues are related to the mainframe business), 3) faster-than-expected share repurchases." International Business Machines closed at $209.82 on Monday.