What Happened At The JPMorgan TMT Conference?

In a report published Monday, JPMorgan analyst Tien-tsin Huang discussed International Business Machines Corp. (NYSE: IBM)'s presentation at the JPMorgan Global Technology, Media, and Telecom conference.

"Overall takeaways were positive but not much incremental to our thesis," Huang wrote. "IBM continues to focus on and experience strong client demand in Strategic imperatives (cloud, analytics, systems of engagement, and security).

Here are Huang's highlights of the presentation:

• IBM is investing in areas that are growing faster than standard industry average rates. These "strategic imperatives" represent 25 percent of overall revenue and should continue to grow at a "fast clip."
• IBM is seeing a lot of spending in analytics, mobile, digital engagement (of customers) and security. The analyst noted that there is "high demand" for cloud services, especially in areas that involve human interaction.
• IBM believes that Watson is best applicable where interference based model is most effective and a vast amount of data is involved. The company is seeing the most traction in the Healthcare sector but Financial services clients could also benefit from advisory areas.
• IBM continues to focus on hybrid cloud opportunities that provide a larger opportunity.
• IBM continues to see "healthy" demand for its middleware software.
• IBM's partnership with Apple Inc. (NASDAQ: AAPL) will drive increased adoption of mobility within enterprises while the company's partnership with Twitter Inc (NYSE: TWTR) and Facebook Inc (NASDAQ: FB) will help retailers identify customer preferences.

Shares of IBM remain Neutral rated with an unchanged $177 price target.