1 year ago
IBM's Transformation Has Become 'Tedious,' Says Barclays
The Street continues to pile up assessments for IBM’s Q2 report tomorrow afternoon, after the closing bell. Barclays’s Mark Moskowitz today reiterated an Underweight rating on IBM shares, and cut his price target to $132 from $141, asking whether it is now time for “IBM to bravely cut the full-year outlook,” as the company’s transformation has to him become “tedious." You’ll recall that IBM on April 19th reiterated a forecast for this year of "at least" $13.80 per share in net profit this year, on a non-GAAP basis. "The narrative is becoming tedious,” writes Moskowitz, "a lot of investments in next-gen tech but with little revenue impact and with increasing dependence on cost take-outs or below-the-line items to manage EPS." As he sees it, "There is little breathing room during the model rebuild, and the potential for a series of favorable earnings revisions is a low probability until a brave reset occurs." IBM stock today closed down $1.23, or 0.8%, at $153.01.