SoundView Ups Price Target on IBM - TheStreet

SoundView expects

IBM

(IBM) - Get Report

to pull off an upside surprise with its third-quarter earnings report, and raised the tech giant's price target.

SoundView forecast third-quarter revenue for IBM of $21.8 billion to $22 billion, with a profit of $1.03 to $1.05 a share. This is above Wall Street's consensus of $21.8 billion in revenue and earnings of $1.02 a share. IBM releases results Wednesday after the bell.

IBM's target price was upped to $110 from $105. SoundView has an outperform rating on the company.

"The IT industry is undergoing rapid consolidation and IBM is participating, with its three largest transactions adding a net five points to its top-line growth," SoundView believes.

The company's hardware business top line is seen declining 1% and its global financing unit is forecast see an 18% revenue decline.

Additionally, SoundView sees IBM's Global Services division hitting its estimates of $10.95 billion in revenue with earnings of $1.28 billion.

Shares of IBM were up 30 cents, or 0.3%, at $92 in Instinet premarket trading.