This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Why IBM Is Worth $220 a Share

NEW YORK (TheStreet) -- Shares of IBM IBM have dropped sharply this year, but one analyst believes that over the next 12 months, the stock has nearly 20% upside.

Cantot Fitzgerald analyst Brian White, who rates shares "buy" with a $220 price target, believes that value investors will start to move towards IBM, which trades at an approximately 40% discount to the S&P 500.

"Over the past few months, there has been a rotation in the mega-cap tech stocks in our coverage universe that has driven an average increase of 12.6% in this group (i.e., ex-IBM but including Apple, Cisco Systems, EMC, Hewlett-Packard, and Oracle) thus far in 2014 versus a 6.8% increase for the S&P 500. However, IBM has significantly underperformed the
group and is down nearly 1% thus far in 2014," White wrote in the note. He notes that IBM shares have risen just 1% since the end of 2011, compared to 57% for the S&P 500, and a 43% average rise for companies like Apple, Cisco, EMC, HP and Oracle.

He also notes that sentiment among the sell-side is exceptionally low, "with just 15% of sell-side analysts having buy ratings on the stock."

IBM is set to report second-quarter earnings later this month. Analysts surveyed by Thomson Reuters expect the company to earn $4.29 a share on $24.12 billion in revenue.

-- Written by Chris Ciaccia in New York

>Contact by Email.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
IBM $164.91 -0.11%
AAPL $125.70 -0.59%
FB $87.91 0.72%
GOOG $522.81 -0.11%
TSLA $280.33 0.11%

Markets

DOW 17,704.16 -25.95 -0.15%
S&P 500 2,070.85 -5.93 -0.29%
NASDAQ 4,993.0150 -16.1990 -0.32%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs