Wired Senior Staff Writer Cade Metz and IBM CEO Arvind Krishna, Senior Vice President and Director of IBM Research, will be speaking on stage at the Wired Business Conference in New York on June 16, 2016.
Brian Ach | Wired | Getty Images
IBM After hardware, software and consulting providers reported more than expected Q1 results, Wednesday’s share price rose more than 7% and analysts began raising price targets and quotes.
Technology companies with a 110-year history have gained more advantage for investors this year as central banks sought to combat inflation at higher interest rates. It’s not growing as fast as its enterprise software competitors, but it continues to generate revenue and pay dividends. It acts as a hedge against market uncertainty.
The executive said On Tuesday, the company will charge a higher price for consulting contracts, although it will cost more to add talent in the coming months. We also plan to launch new mainframe computers that have the potential to help us grow. Analysts surveyed by Refinitiv confirm that IBM grew 6% in 2022, up from less than 4% last year.
Eric Woodling, an analyst at Morgan Stanley, said in a note to clients that it was the equivalent of buying IBM stock, “after recording outperformance twice in a row, it gradually became more constructive. I have. ” The company’s 12-month price target has moved from $ 150 to $ 157, and IBM’s revenue is expected to increase by 5% in constant currency in 2022, but previously increased by about 4%.
In the current environment, Morgan Stanley is tracking because volatility and uncertainty are driving current market conditions, and more than half of IBM’s revenue is recurring rather than based on temporary transactions. Woodring writes that it shows better performance than other hardware companies. ..To do that Apple, Dell Technologies, HP Inc. When Xerox..
Analysts at Bank of America have a purchase rating for IBM shares, raising earnings and earnings expectations for 2022, 2023 and 2024. We are defensive (outperforming in a difficult macro environment) and expect sustainable earnings growth after 2022. “
Credit Suisse analysts Sami Badri and George Engrov valued IBM stock as a buy, boosting estimates this year and next, raising the target price for IBM stock to $ 166.
Not everyone feels good about IBM after the report. Bernstein Research’s Toni Sacconaghi Jr., equivalent to the hold rating of IBM stocks, raised IBM’s full-year forecast “moderately”, but margins were narrower than expected and could be temporary if they rose. It states. 2023 will be a more difficult year for the company.
look: We don’t own IBM, but that’s not unreasonable, says Karen Firestone
