Street View: IBM recovery gains traction as analysts turn constructive

International Business Machines

Today 09:38

** IBM IBM.N finance chief James Kavanaugh on Wednesday said delayed software deals that rattled investors in the last quarter were beginning to close, as the company lifted its forecast for the business and reported better-than-expected third-quarter earnings
**  Shares of US tech firm fall about 6% in premarket trading

MAKING UP LOST GROUND
** Barclays ("overweight," PT: $262) says a rebound in transaction-processing software and solid momentum in Red Hat and the data business supported the quarter, with data delivering its strongest growth this year
** RBC Capital Markets ("outperform," PT: $270) says though investor debate persists around the mainframe business and software operations outside transaction-processing products, it believes both segments are moving in the right direction
** Morgan Stanley ("equal weight," PT: $240) says IBM bounced back after delayed deal closures weighed on the previous quarter, while strong growth in distributed infrastructure and continued cost savings helped offset margin pressure
** J.P. Morgan ("overweight": $296) says IBM's recovery reinforces its positive outlook, supported by Red Hat, data software, the mainframe cycle, and growing AI infrastructure demand
     
     

 (Reporting by Akriti Shah in Bengaluru)
 ((akriti.shah@thomsonreuters.com ; X, formerly Twitter: @AkritiShahh))