Analyst starts IBM at Sell on "irreversible" decline

|By:, SA News Editor

MoffettNathanson initiates IBM (NYSE:IBM) at Sell on profits in an “irreversible structural decline.”

Analyst Lisa Ellis supports IBM management’s turnaround strategy but says that “six+ years in, the company’s recovery remains protracted and uncertain.” 

Ellis estimates that only 25% to 30% of IBM revenue comes from growth businesses with much of the portfolio in “structurally declining areas” like Enterprise IT. 

Price target: $150, about 2% lower than yesterday’s close.    

IBM shares are down 1.3% to $151.21.    

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