In a report released today, Erik Woodring from Morgan Stanley maintained a Hold rating on International Business Machines (IBM – Research Report), with a price target of $237.00.
Erik Woodring has given his Hold rating due to a combination of factors influencing IBM’s current market position. The company is expected to deliver results that align with market expectations for the first and second quarters, with no significant changes anticipated in revenue growth or free cash flow for the year. Despite some adjustments in Consulting and Infrastructure expectations, IBM’s software segment is projected to drive growth, maintaining its status as a stable investment option amidst a challenging economic environment.
IBM’s valuation appears elevated, trading at a historically high price-to-earnings ratio compared to the broader market and its peers. This high valuation suggests that the current market conditions, characterized by uncertainty, have already priced in IBM’s expected performance. Consequently, while the company faces some headwinds in its Consulting and Infrastructure segments, the overall outlook remains steady, justifying a Hold rating for investors seeking safety in a volatile market.
According to TipRanks, Woodring is a 3-star analyst with an average return of 1.0% and a 55.43% success rate. Woodring covers the Technology sector, focusing on stocks such as Apple, Dell Technologies, and International Business Machines.
In another report released on April 6, Jefferies also maintained a Hold rating on the stock with a $265.00 price target.