CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:
We raise our 12-month target price by $8 to $150, 15.1x our ’24 EPS estimate, a discount to peers, reflecting ongoing operational challenges. We trim our ’23 EPS estimate by $0.03 to $9.52 and lower ’24’s by $0.18 to $9.95. IBM reported Q3 operating EPS of $2.20 vs. $1.81, $0.07 above the consensus. Q3 revenue increased 4.6%, with 6% growth in software revenue on strength in both Hybrid Platform & Solutions and Transaction Processing, as well as a 5% increase in Consulting, with strong signings performance and a book-to-bill ratio greater than 1.15, partially offset by a 3% decline in Infrastructure, driven by declines in Distributed Infrastructure and Infrastructure Support. Overall results came in ahead of expectations despite clients continuing to cut back on discretionary projects in the face of tough macroeconomic conditions.