IBM Q3 Preview: Analyst Sees Margin Challenges Despite Steady Software Demand
Portfolio Pulse from Nabaparna Bhattacharya
BMO Capital Markets analyst Keith Bachman reiterated a Market Perform rating on International Business Machines Corporation (IBM) with a price target of $152. Bachman notes steady software demand and potential for IBM to meet or exceed estimates in 2HFY23, helped by M&A. The early closure of the Apptio deal could provide a slight upside. However, Bachman remains skeptical about IBM's consulting estimates in 2HFY23 and expects margin challenges to persist.
October 24, 2023 | 6:02 pm
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IBM's steady software demand and early closure of the Apptio deal could provide a slight upside. However, margin challenges are expected to persist, which could impact the stock negatively.
The steady software demand and early closure of the Apptio deal are positive factors for IBM. However, the expected margin challenges could offset these positives, leading to a neutral short-term impact on the stock.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 100