Shares of IBM (NYSE:IBM) are slightly lower today after receiving an analyst downgrade. Logan Purk of Edward Jones changed his rating from Buy to Hold and stated that the shares are fairly valued.
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Purk noted that IBM has done well to spin off low-growth businesses to now be able to achieve 4% to 6% revenue growth. However, its debt load and dividend payout reduce IBM’s financial flexibility going forward. As a result, the share price is unlikely to be boosted much further.
Overall, Wall Street analysts have a consensus price target of $143.56 on IBM stock, implying over 5% upside potential, as indicated by the graphic above.
