Information Provided By:
Fly News Breaks for October 21, 2019
IBM
Oct 21, 2019 | 05:52 EDT
UBS analyst Munjal Shah downgraded IBM to Neutral from Buy with a price target of $140, down from $170. The stock closed Friday down 17c to $134.09. The analyst believes it will be difficult for the company to achieve sustainable mid-single digit revenue growth. In 2020, pressure in the legacy businesses should somewhat offset the growth from year one of the mainframe cycle and Red Hat acquisition, Shah tells investors in a research note. The following year "should be even more challenging" with greater revenue pressure due to a tough year two mainframe compare and lower incremental Red Hat contribution, adds the analyst. Further, currency remains a headwind and a lack of share buybacks will limit earnings growth outside of deleveraging, says Shah.
News For IBM From the Last 2 Days
There are no results for your query IBM