NEW YORK (TheStreet) -- Shares of IBM (IBM - Get Report) are rising 1.31% to $161.95 in pre-market trading Tuesday after the tech giant posted higher-than-expected earnings and revenue for the 2016 second quarter.

After yesterday's closing bell, the Armonk, NY-based company reported earnings of $2.95 per share, exceeding analysts' expectations of $2.89 per share.

Revenue fell 3% to $20.24 billion year-over-year, but beat analysts' projections of $20.03 billion. IBM has now reported revenue declines for 17 straight quarters.

For 2016, the company maintained its earnings per diluted share guidance of at least $13.50.

CFO Martin Schroeter told Barron's the company is "solidly on track" for where it wants to be regarding its strategic imperatives in two and a half years.

He also said he's pleased with the quarter and believes investors should take note of the 12% year-over-year growth in strategic imperatives revenue.

Deutsche Bank raised its price target to $145 from $135 and maintained its "hold" rating on IBM stock after the results.

"On the surface, results appear to be improving, but digging deeper, we continue to see areas of concern," the firm wrote in an analyst note.

Excluding acquisitions, the organic business continues to decline and a deceleration in strategic initiatives growth remains an area to watch, according to Deutsche Bank.

Separately, TheStreet Ratings Team has a "Buy" rating with a score of B- on the stock.

The company's strengths can be seen in multiple areas, such as its good cash flow from operations, expanding profit margins and notable return on equity.

The team believes its strengths outweigh the fact that the company has had somewhat weak growth in earnings per share.

Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.

You can view the full analysis from the report here: IBM