IBM: Wedbush Securities maintains 'neutral' rating

(CercleFinance.com) - Wedbush Securities maintains its "neutral" rating on IBM, with a price target of 165 dollars, seeing a "balanced risk-reward scenario" after the IT giant completed the acquisition of Red Hat yesterday.


"On one hand, IBM makes a notable competitive statement by acquiring critical mass (Red Hat) into the fast-growing hybrid cloud market”, the brokerage firm writes in a note.

"On the other hand, deal metrics (34 billion dollar transaction value ...) combined with potential execution challenges, provide incremental risks", it says.

In order to unlock shareholder value, IBM now has to launch an aggressive restructuring of its underperforming business, with a focus on improving profitability, Wedbush adds in the report.

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