What Deutsche Bank Is Watching At IBM
Deutsche Bank issued a report on International Business Machines Corp. (NYSE: IBM) as the company is expected to report earnings Monday after the market close. Deutsche Bank rates IBM as Hold with a $160 price target.
Analysts Sherri Scribner and Larry Zhong wrote, “We expect rev growth to remain difficult for IBM due to secular challenges. At IBM's 2015 Investor Day, mgmt lowered FY-15 revenue guidance due to expectations of a greater FX drag. In addition, the shift to cloud and the negative Y/Y impact from the x86 divestiture to Lenovo Group Limited (HKG:0992) continue to put pressure on revenue growth. While the mainframe refresh should benefit IBM in C2Q-15, hardware is less than 10 percent of sales and probably won't be enough to offset FX pressures and secular challenges.”
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Deutsche Bank noted that the strong dollar may weigh on earnings results as well, while declines in IBM’s legacy core segments will offset any growth in strategic operations. IBM’s management believes that the three strategic plans of Data, Cloud, and Engagement will generate $40 billion in sales by 2018.
Shares of IBM traded recently at $164.42, up 2.3 percent.
Latest Ratings for IBM
Mar 2015 | Atlantic Equities | Downgrades | Neutral | Underweight |
Jan 2015 | Deutsche Bank | Maintains | Hold | |
Jan 2015 | Stifel Nicolaus | Maintains | Buy |
View More Analyst Ratings for IBM
View the Latest Analyst Ratings
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