S&P Capital IQ Reiterates its STRONG BUY Rating on IBM, Estimates Reduced

October 19 00:00 2011

NEW YORK, October 19 (RainbowNewsLine.com) – Analyst Dylan Cathers of S&P Capital IQ maintains his STRONG BUY rating on the shares of IBM (NYSE: IBM), while reducing the estimates for the company. The target price is set to $205.

Analyst Dylan Cathers, in a research note published yesterday mentions that the company reported Q3 EPS ahead of the estimates. The company has cut down the revenue growth guidance for 2011 and 2012 from 8% to 7.5% and from 5% to 3.5%, respectively. Considering the softening economic conditions, the demand for hardware might raise concerns and the demand from public sector may get sluggish, the analyst says. The analyst however expects the emerging markets and the demand for high margin software and services to be robust going forward. The EPS estimate for 2012 has been reduced from $15 to $14.91.