Will IBM (IBM) Stock Be Helped By China's Inspur Deal?

NEW YORK (TheStreet) -- IBM (IBM) will help Inspur International, China's largest server vendor, design server systems, the companies announced today, an unexpected development in what has been a politically charged rivalry in the Chinese technology market, Reuters reports.

Since last year Inspur has aggressively marketed its servers to Chinese state-owned firms as a replacement for IBM systems while U.S.-China relations have worsened dramatically over mutual suspicions of cyber-spying, Reuters said.

The two companies made no mention of cyber-security today when they announced that IBM would make its DB2 database software and Websphere application software available for use on Inspur's line of K1 servers, Reuters noted.

Shares of IBM are flat.

TheStreet Ratings team rates INTL BUSINESS MACHINES CORP as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:

"We rate INTL BUSINESS MACHINES CORP (IBM) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its growth in earnings per share, increase in net income, notable return on equity, good cash flow from operations and expanding profit margins. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

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