Collins Stewart Maintains Buy, $210 Target on IBM

Collins Stewart reiterates its Buy rating and $210 target price on IBM (NYSE: IBM) as the company is expected to delivers 4Q results in line with forecasts.

Collins Stewart says, "Our checks suggest IBM's 4Q closed out in-line with our prior expectations. Our concern heading into last quarter was that as the shares were hitting all-time highs, expectations were also too high, and indeed the shares sold off post-report. This quarter, expectations are much more reasonable, in our view, and we reiterate our Buy rating and $210 PT, or 14x our 2012 EPS estimate of $14.85. IBM's shares were up 25% in 2011 following a 14% return in 2010. While we are not expecting that kind of return in 2012, we find the shares attractive due to consistent & steady double-digit earnings growth due to cost cutting, share buy-backs and growth in emerging market countries."

IBM closed at $180 per share on Tuesday.