Venerable Big Blue just can’t seem to cut a break. The struggling technology giant’s stock took two hits in a week after receiving another analyst downgrade, this time from Morgan Stanley.
IBM stock was already on the decline after Evercore ISI analyst Amit Daryanani lowered his rating to in line from outperform and reduced his price target to $145 from $160 on expectations the company’s fourth-quarter earnings forecasts might be overly optimistic.
And it continued to head south after Morgan Stanley analyst Katy Huberty issued a downgrade to equal weight from overweight on concerns over the IT spending and margins in 2020, which she believes will weigh on margins.
Huberty also cut her one-year price target on IBM stock to $155 from $170.
IBM is expected to have earned $4.69 a share when it reveals its most recent quarterly results on Jan. 21, according to FactSet consensus estimates. In the year-ago quarter IBM earned $4.87 a share. Sales were expected to have rung in at $21.6 billion for the quarter.
Shares of IBM were down a little more than 1% at $136.50 in Friday trading.
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