IBM's Q3 Earnings Are On The Docket For Monday Afternoon

As far as different brokerages are concerned, there is total unanimity in reiterating their respective ratings. There has been no change in the ratings of the stock in the last three-month period. While 10 analysts have reiterated their Hold rating, four analysts have maintained their Buy rating and three analysts have kept their Sell rating on IBM shares.

Similarly, target prices on the stock are different among the 17 brokerages. For instance, Credit Suisse has the lowest target price of $110, while Drexel Hamilton has a price objective of $186, which is the highest.

While nine analysts have a target price of above $150, five brokerages have less than $150 price objective and three analysts have not revealed their price targets. Significantly, seven brokerages have more than $160 as their price objectives.

Related Link: IBM Ushers In Q3 Results With A Preferred Lens For Investors

History suggests IBM is consistent in delivering EPS beat. However, the issues in the last several quarters have been revenue growth. It is quite likely that there would not be any significant changes in that.

At least two brokerages, Credit Suisse and Goldman Sachs, expect IBM's organic revenue to drop in the third quarter. Credit Suisse expects organic revenue drop accelerate in the current year to 4.5 percent from 1.8 percent and 1.2 percent in 2014 and 2015 respectively at constant currency basis.

Similarly, Goldman Sachs thinks that IBM might have faced pressures citing discretionary IT spending budgets. Interestingly, both the brokerages have kept their target price below $150 levels.

At last check, IBM was up 0.21 percent at $154.80.

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