IBM Posts Mixed Q3 Results, These Analysts Differ On Prospects
Shares of IBM (NYSE:IBM) tanked in early trading on Thursday, after the company reported downbeat third-quarter revenues.
The company reported its results amid an exciting earnings season. Here are some key analyst takeaways.
- Morgan Stanley analyst Erik Woodring maintained an Equal-Weight rating, while lowering the price target from $217 to $208.
- BMO Capital Markets analyst Keith Bachman reiterated a Market Perform rating, while raising the price target from $235 to $260.
- Bank of America Securities analyst Wamsi Mohan maintained a Buy rating and price target of $250.
- Goldman Sachs analyst James Schneider maintained a Buy rating and price target of $250.
- RBC Capital Markets analyst Matthew Swanson maintained an Outperform rating and price target of $250.RBC Capital Markets
- Piper Sandler analyst James Fish said that one of the takeaways from IBM’s results is the pause in discretionary spending.
Check out other analyst stock ratings.
Morgan Stanley: IBM reported third-quarter revenues of $15 billion, short of expectations, “as Infra (6% miss) and Consulting (1% miss) underperformed, while Software (1% beat) outperformed,” Woodring said in a note. “On the positive side, RHT growth of 14% Y/Y and TPP growth of 9% Y/Y were both well ahead of our expectations, leading to a software revenue beat, impressive software gross margin expansion, and a 90bps total company gross margin beat,” he added.
The company reported total Gen AI bookings of $1 billion, although Gen AI revenue contribution was limited, the analyst stated. “Consulting commentary creates a bit more of a 2H-loaded …
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