UBS Remains Sidelined on IBM (IBM) Following 2Q - PT to $160

UBS reiterated a Neutral rating on IBM (NYSE: IBM), and raised the price target to $160.00 (from $150.00), following the company's 2Q earnings report.

Analyst Steven Milunovich commented, "Our view on IBM has been steadfastly neutral. We think the bears don't give IBM enough credit for the shift in investments it has made along with the likelihood that IBM will not miss earnings as many expected coming into the year, in part thanks to favorable currency changes and the Japan tax rebate. The bulls—the few we talk to— take the risk that IBM isn't overselling Watson and software doesn't fall apart. IBM's 2Q gave both sides grist. We have not been willing to chase the stock, but we think a 3.5% dividend yield and improving earnings momentum likely limit downside. The stock ultimately may depend on whether IBM has success "beyond the traditional IT marketplace" in the words of CEO Rometty."

For an analyst ratings summary and ratings history on IBM click here. For more ratings news on IBM click here.

Shares of IBM closed at $159.86 yesterday.

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