After Three Challenging Years, We Believe Change Is Inevitable For IBM In 2015, Says Cantor
In a research report sent to investors today, Cantor analyst Brian White reiterated a Buy rating on International Business Machines (NYSE:IBM) with a price target of $198, which represents a potential upside of 21% from where the stock is currently trading.
White noted, “This year has been another disappointing one for IBM investors with the stock significantly underperforming the S&P 500 Index and the mega-cap tech stocks in our coverage universe. Unfortunately, this is not the first year of underperformance for IBM as the stock has meaningfully trailed the market and its mega-cap tech peers since the end of 2011.”
Furthermore the analyst said, “Trading at just 9.7x the Street’s CY:15 EPS estimate (FactSet consensus), sporting a 2.7% dividend yield and feeling the cold shoulder of the lowest sell-side analyst sentiment in the past 20 years, we believe change is in the air in 2015 as we expect IBM to begin delivering improved performance or an activist investor will get involved in this iconic global brand.”
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Brian White has a total average return of 20.1% and a 72.6% success rate. White has a -5.5% average return when recommending IBM, and is ranked #16 out of 3395 analysts.