Analyst Upgrades IBM Based on "IT-as-a-service" Potential, Downgrades NetApp

Steven Milunovich, an analyst at UBS, raises IBM to Buy, from Neutral and moves the price target up to $235, from $210. Milunovich made the upgrade because he believes IBM is "well positioned for IT-as-a-service," and believes most of it will take place in the cloud, IBM's specialty. He went on to say that IBM is "well on its way" to earnings $20 per share in 2015. The firm also downgraded NetApp to Neutral, from Buy, due it being not as well positioned as IBM. IBM is currently up ~ 1.25 percent in Wednesday's pre-market trading.