International Business Machines Corp. (NYSE:IBM)‘s stock has gained some ground on Monday trading, edging up by around 1.5% so far today. In a recent interview on CNBC, Brian White of Cantor Fitzgerald, and Peter Misek of Jefferies & Co have provided their insights on the stock, including their target prices and recommendations for IBM.
Cantor Fitzgerald currently has set the ‘Buy’ rating for International Business Machines Corp. (NYSE:IBM), with the target price at $220, which is significantly above the current price of the stock, which has gained around 2% since the beginning of the year. Moreover, the target is above the 52-week high of the stock, which stands at approximately $211.
“As S&P 500 continues to make new highs and certain areas within the equity markets are rewarded with very generous valuations, we believe the high-quality, mega-cap tech companies like IBM are too cheap to ignore,” CNBC quoted Brian White as saying.
At the same time, White said that the ratings for International Business Machines Corp. (NYSE:IBM) are currently very low, with only 14% of the IBM ratings, recommending the stock as a ‘Buy’.
On the other hand, Peter Misek, seems to be not so optimistic about the prospects of IBM. Jeffries & Co has set a target price for IBM at $190, with the current rating being ‘Hold’.
Both analysts have also discussed about International Business Machines Corp. (NYSE:IBM)’s transition to cloud computing. And while, both White and Misek agree that the company is going to achieve this transition, the latter thinks that it is going to be a more difficult process.
The full interview can be watched below:
Around a month ago, International Business Machines Corp. (NYSE:IBM) has reported its financial results for the first quarter of the year, showing an EPS of $2.54 per share, which was in line with the estimates, while the revenue, which amounted to $22.48 billion, slightly below the estimates. The decline in revenue was mainly caused by falls of sales in the hardware sector. At the same time, the company showed gains in its software segment. Moreover, the company is currently pursuing new areas, such as cloud computing, according to the CEO, Virginia M. Rometty, quoted by CNBC.