- Morgan Stanley analyst Erik Woodring upgraded the rating on International Business Machines Corp (NYSE:IBM) to Overweight from Equal-weight, with a price target boost to $150 from $147 (16% upside).
- Woodring saw IBM as a reliable "defensive play" amid more significant risks in the tech sector.
- IBM will likely outperform in Q1 in a scenario of IT hardware budget cuts, with more than half of its sales coming from recurring revenue sources and only 20% of revenue from hardware and operating systems.
- Woodring also credited CEO Arvind Krishna for taking steps to stimulate IBM, like accelerating mergers and acquisitions, expanding partnerships, etc.
- Woodring saw signs of improving customer sentiment and spending plans.
- Price Action: IBM shares traded higher by 1.03% at $127.44 on the last check Thursday.
