UBS Downgrades IBM (IBM) to Neutral. IBM (IBM) Numbers Cut at BMO Capital PT $195
BMO Capital lowered its price target on IBM (NYSE: IBM) from $215 to $195 following disappointing Q3 results after the close. The firm maintained a Market Perform rating.
Analyst Keith Bachman weighs in, "IBM reported another disappointing quarter. We had expected modest weakness relative to consensus revenue estimates in the Sept Q and more pronounced weakness in the Dec and subsequent Qs in 2014. In fact, IBM missed our rev estimate by a meaningful amount in Sept. We had projected revs to be $24.7 billion (consensus of $24.8 billion) and actual revs were $23.7 billion. Reported EPS was $3.99 vs. our $4.04, but a lower tax rate added almost $0.40 (we had assumed a 25% tax rate). Finally we had expected free cash flow to be $3.4 billion and actual FCF was $2.7 billion."
The firm lowered CY14 estimates from $18.00 to $17.85.
Well wait for $110 or less before buying.... IBM just like HPQ, going no where quick....