IBM

Jefferies analyst Brent Thill initiates coverage on IBM (NYSE:IBM) with a Hold rating and announces Price Target of $180.

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 target by $27 to $177, on a P/E of 17.5x our ’24 EPS estimate, near peers and above IBM’s one-year average (14.3x) as well as our previous multiple (15.1x). We increase our ’24 EPS view to $10.10 from $9.95 and initiate ’25 at $10.52. We think IBM can structurally lift its multiple as it grows its proportion of recurring revenue (>50% of ’22 sales) and software revenue (42.5% of Q3 sales), while attaching itself to themes like cloud migration and GenAI, allowing it to exhibit resilient growth despite a soft macro environment. We are encouraged by the success of IBM’s AI platform (watsonx) and think its recently-announced AI governance toolkit (watsonx.gov) will find success as conversations accelerate around the responsible application of AI. We

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

IBM (NYSE:IBM) reported Q2 non-GAAP EPS Wednesday of $2.18, down from $2.31 a year earlier. Analysts surveyed by Capital IQ expected $2.0. Revenue for the quarter ended June 30 was $15.48 billion, down from $15.54 billion a year earlier. Analysts surveyed by Capital IQ expected $15.57 billion. The company said it expects full-year 2023 revenue growth of 3% to 5% on a constant currency basis, unchanged from the previous outlook.