Insightful Word
  • Investing
  • Stock
  • Economy
  • Politics
  • Investing
  • Stock
  • Economy
  • Politics
No Result
View All Result
Insightful Word
No Result
View All Result
Home Stock

IBM stock momentum to continue: Morgan Stanley

admin by admin
October 17, 2024
in Stock
0
IBM stock momentum to continue: Morgan Stanley
0
SHARES
9
VIEWS
Share on FacebookShare on Twitter

Investing.com — Morgan Stanley analysts believe IBM (NYSE:IBM)’s recent stock momentum is likely to persist through the upcoming earnings season.

Despite maintaining an Equal-Weight rating on the stock, the firm highlights several bullish drivers that have propelled IBM to outperform the S&P 500 by 20 percentage points since its second-quarter earnings on July 24.

In a note to clients, Morgan Stanley said, “We don’t see much that is likely to derail IBM’s momentum at 3Q earnings.”

They expect the company’s third-quarter results and fourth-quarter guidance to meet or even slightly exceed Street estimates, providing further support for the stock.

IBM’s valuation reached all-time highs, with the stock now trading “in-line with the market” for the first time in over a decade.

Analysts attribute this performance to three key factors: optimism around growth acceleration in 2025 driven by ELA and mainframe cycles along with the HCP acquisition, the company’s potential as a beneficiary of AI, and expectations that IBM’s Red Hat division will capitalize on market volatility at VMware (NYSE:VMW).

Morgan Stanley remains optimistic about IBM’s trajectory despite risks, including the deceleration of Red Hat, which could pose a challenge in the third quarter.

“For now, remain EW,” they wrote, pointing out that their 3Q24 revenue and EPS estimates are 1-3% above consensus, thanks to slight upside in software sales, the closing of the QRadar asset sale, and reduced foreign exchange headwinds.

The analysts set a new price target of $217 on the stock, up from $182, implying a potential downside of 7%.

However, they expect IBM to “trade between our base and bull cases in the near-term” through the end of the year. “We remain EW-rated as [we] don’t expect 3Q earnings to be a negative catalyst,” they concluded, reinforcing the view that IBM’s stock will maintain its momentum.

This post appeared first on investing.com

Previous Post

Futures extend gains after economic data

Next Post

Interview: Ed Yardeni says US Fed cut interest rates too much, too soon

admin

admin

Next Post
Interview: Ed Yardeni says US Fed cut interest rates too much, too soon

Interview: Ed Yardeni says US Fed cut interest rates too much, too soon

Trending News

Holders Continue To Ditch Solana (SOL) As Price Dips, While Remittix (RTX) Causes Market-Wide Frenzy

Holders Continue To Ditch Solana (SOL) As Price Dips, While Remittix (RTX) Causes Market-Wide Frenzy

August 5, 2025
Tesla defies European slump in February as UK sales remain strong ahead of tax hike

Tesla defies European slump in February as UK sales remain strong ahead of tax hike

March 5, 2025
US GDP rebounds 3.3% in Q2 as imports plunge after tariff surge, consumer activity firms up

US GDP rebounds 3.3% in Q2 as imports plunge after tariff surge, consumer activity firms up

August 28, 2025
Subscribe to Insightful Word


    Recent News

    Nvidia shares fall on China sales exclusion, weaker data center sales: analysts weigh in

    Nvidia shares fall on China sales exclusion, weaker data center sales: analysts weigh in

    August 28, 2025
    SentinelOne stock price forecast ahead of earnings: buy or sell?

    SentinelOne stock price forecast ahead of earnings: buy or sell?

    August 28, 2025
    Tesla wants millions of robotaxis by 2025, but will Waymo win the long game?

    Tesla wants millions of robotaxis by 2025, but will Waymo win the long game?

    August 28, 2025
    Urban Outfitters stock slides 4% despite strong quarter on cautious outlook

    Urban Outfitters stock slides 4% despite strong quarter on cautious outlook

    August 28, 2025

    Recent News

    Nvidia shares fall on China sales exclusion, weaker data center sales: analysts weigh in

    Nvidia shares fall on China sales exclusion, weaker data center sales: analysts weigh in

    August 28, 2025
    SentinelOne stock price forecast ahead of earnings: buy or sell?

    SentinelOne stock price forecast ahead of earnings: buy or sell?

    August 28, 2025

    Latest News

    • Nvidia shares fall on China sales exclusion, weaker data center sales: analysts weigh in
    • SentinelOne stock price forecast ahead of earnings: buy or sell?
    • Tesla wants millions of robotaxis by 2025, but will Waymo win the long game?

    About Insightful Word

    • Contacts
    • Cookie Notice
    • Privacy Policy
    • Terms of Service
    • Trading tools
    • Contacts
    • Cookie Notice
    • Privacy Policy
    • Terms of Service
    • Trading tools

    Copyright © 2025 Insightfulword.com. All Rights Reserved.

    No Result
    View All Result
    • Investing
    • Stock
    • Economy
    • Politics

    Copyright © 2025 Insightfulword.com. All Rights Reserved.