International Business Machines Corp (NYSE:IBM) is trading lower Tuesday morning following bearish analyst coverage from UBS.
UBS analyst David Vogt downgraded IBM from a Neutral rating to a Sell rating and lowered the price target from $136 to $124.
Vogt cited valuation concerns as a reason for the downgrade, according to a report from The Fly.
The UBS analyst noted that the stock is trading well above its trailing three- and five-year averages "despite a history of execution issues."
At current levels, IBM shares are pricing in 2022 and 2023 earnings estimates that are about 10% above Vogt's estimates.
IBM is set to announce its fourth-quarter financial results after the market closes on Jan. 24.
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IBM Price Action: IBM has traded as low as $114.56 and as high as $152.84 over a 52-week period.
The stock was down 3.56% at $130.23 at time of publication.
Photo: courtesy of IBM.
