Drexel Hamilton analyst Brian White weighed in on International Business Machines Corp. (NYSE:IBM), after the technology giant released second-quarter results, posting earnings of $2.95 per share and revenue of $20.24 billion, above White’s expectations of $2.91 and  $19.14 billion, respectively. IBM shares are currently trading at $159.32, down $0.54 or -0.34%.

White noted, “Overall, we are pleased with IBM’s results this evening as we believe this print supports a transition that is starting to turn the corner. During this transition at IBM, the stock has underperformed the S&P 500 Index by 85% since the end of 2011 and with the stock sporting a rich dividend yield of 3.5%, we believe the stock has an opportunity to play catch up in H2:2016.”

According to White, IBM is in a position for a positive outlook looking at 2016 and pro forma earnings per shares now hoping to reach a minimum of $13.50; meanwhile cash flow is expected to reach the cusp in the $11-12 billion range.

The analyst reiterated a Buy rating with a price target of $166.00, marking a 9% increase from current levels.

As usual, we like to include the analyst’s track record when reporting on new analyst notes to give a perspective on the effect it has on stock performance. According to TipRanks, Brian White is ranked #121 out of 4,064 analysts, sustaining a 59% success rate and garnering an average return per recommendation of 8.4%.

Tipranks analytics indicate that over a period of the last 3 months, 3 out of 14 analysts polled rate IBM stock a Buy, with another 3 also issuing a Sell, and the majority remaining of 8 maintaining a Hold. The average 12-month price target for the stock is $150.29, with a marked nearly 6% downside from where shares last closed.