Fri 10 Feb 2006
Analyst increases IBM rating to “buy”
Posted by Sim' under Performance
Business Week reports that analyst Megan Graham-Hackett has increased the rating for IBM from 3 stars (hold) to 4 stars (buy).
Megan writes, “We are raising our recommendation to buy based on valuation, as the shares are now trading at 13.5 times our 2006 earnings per share (EPS) estimate of $5.90. We do not believe this appropriately reflects the company’s market share gains and competitive assets in software. We are increasing our 12-month target price to $88 from $87, based on the shift in our valuation models to reflect 2007 forecasts from 2006’s. Our target price assumes IBM shares can trade at 1.5 times our 2007 revenue estimate, in line with the historical range.”
Full article: S&P Ups Google to Hold from Sell
Tags:analyst, ibm, rating, stock