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NYSE:IBM
This summary was created by AI, based on 24 opinions in the last 12 months.
IBM Common Stock, represented by the symbol IBM-N, has brought forward mixed sentiments among experts. While some express optimism over its long-term potential, particularly in AI and quantum computing, others highlight recent disappointing earnings and significant stock price drops. In terms of valuation, the stock trades at multiples ranging from 18x to 22x PE, leading to some experts suggesting it may be overvalued, especially considering its historical performance and recent volatility. Many experts also draw attention to its transition from hardware to services that could indicate a more sustainable business model. The overall sentiment suggests cautious optimism, with some experts advocating for buying during dips and others recommending to wait for clearer signals of recovery.
They purchased Red-hat and the market has not given them credit for this. He thinks it will lead to considerable upside. They buy back shares most years as well as raising the dividend. He thinks there is real value here. This one will not be hit as much by a correction.
It is a tough one. He would like to see a quarter or two with Red Hat before deciding to go in. He is not rushing out.
IBM vs. MSFT Likes MSFT, but it's too expensive for its growth rate. IBM is interesting. Has momentum, growing in the cloud. RedHat's revenue accelerating. Incredibly cheap. Good dividend and pretty safe. Only thing is, it's not best in breed, which is where the money will go first. But it's a fine name.
IBM vs ORCL? Everyone is looking for the next MSFT. He would go with IBM. There are some new high level managers, who he feels will best take them into that direction. The problem with IBM is that the shares are trading near where analysts are setting their target price. He might buy 1/3 of a position here.
He bought it last year around $140. They put the CEO of Red Hat (that they bought) to be their president, and head of cloud services of RH to be IBM's CEO, but this is a big ship to turn around. Their legacy businesses are in decline and are not as well-positioned as peers MSFT and Amazon. Their cloud services grew 25% last quarter. There should be higher growth in the future.
Stockchase Research Editor: Michael O'Reilly The company doesn't leap to mind as a up and coming rising star, but it is a dividend aristocrat with a strong, and sustainable, dividend. The company is expanding its efforts in AI and cloud based services, including a recent partnership in Korea, where citizens will share health related surveys for policy makers. The company was recently upgraded to a target of $155 -- over 25% upside potentially. We would trade this with a stop loss at $115. Yield 5.26% (Analysts’ price target is $134.06)