Stock Update (NYSE:IBM): IBM Drops 6% as ‘Transformation’ Debates ‘Hope Trade’

[at Barrons.com] – Some, like Morgan Stanley’s Katy Huberty, are impressed with the details of how IBM’s “strategic imperatives” are showing improvement in that reporting. Herewith, some views from the Street: Katy Huberty, Morgan Stanley: Reiterates an Overweight rating, and a $168 price target. “Part of our OW thesis is predicated on improved FCF conversion as IBM digests more flexible contracts with large customers and begins to convert growth in Strategic Imperatives. Read more on this. International Business Machines Corporation (IBM) , with a current market cap of $137.36B, began trading this morning at $146.47. During the trading session, IBM traded between $142.76 to $146.95 with a one year range of $116.90 to $176.30. Priced at 11.26x this year’s forecasted earnings, IBM shares are relatively expensive compared to the industry’s 10.01x forward p/e ratio. And for passive income investors, the company pays shareholders $5.20 per share annually in dividends, yielding 3.43%. According to a consensus of 19 analysts, the earnings estimate of $3.45 per share would be $0.39 worse than the year-ago quarter and a $0.01 sequential decrease. In looking at the bigger picture, the full-year EPS estimate of $13.55 would be a $1.37 setback when compared to the previous year’s annual results. The quarterly earnings estimate is predicated on a consensus revenue forecast of $19.83 Billion. If reported, that would be a 4.71% decrease over the year-ago quarter. Recently, Morgan Stanley upgraded IBM from Equal-Weight to Overweight (Feb 18, 2016). Previously, JMP Securities Initiated IBM at to Mkt Outperform. The average price target for IBM shares by the analysts covering it is $137.00, which is 6.47% below where the stock opened. See more in (NYSE:IBM) Similar Articles: Market Update (NYSE:IBM): Digital Influencer Sandy Carter: Driving IBM’s Transformation With Developers Company Update (NYSE:IBM): IBM Signs Agreement to Acquire Aperto to Meet Growing Client Need for Digital Transformation Stock Update: International Business Machines Corporation (NYSE:IBM) – Stocks waver in midday trade; IBM weighs on Dow average