BMO Capital analyst Keith Bachman raised his price target on IBM (IBM) to $155 after its Q1 results and affirmed FY19 outlook, saying he is modeling a "modestly higher" enterprise value to free cash flow multiple with a higher conviction to his prior forecasts for 2020 free cash flow. The analyst is also keeping his Market Perform rating on the shares, stating that while the quarter had "a lot of moving parts", revenues were "a tad disappointing" amid some weakness in emerging markets. Bachman contends that IBM is moving in the right direction with its Red Hat (RHT) acquisition, but he does not find the valuation on the stock "compelling".

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BMO Capital lowered the firm's price target on IBM (IBM) to $190 from $210 and keeps a Market Perform rating on the shares. IBM's updated segment guidance was net weaker given the trade from Consulting growth to less durable Infrastructure growth, despite maintaining the total revenue growth guide, the analyst tells investors in a research note. The company also paid a premium in its HashiCorp (HCP) deal, though the acquisition "makes sense" strategically to improve IBM's Software portfolio and fits with Red Hat/infra focus, the firm added.