Barron’s Says IBM Should Trade At A Higher Multiple

Barron’s cited International Business Machines Corp (NYSE: IBM) Chief Executive Officer Sam Palmisano in an interview as saying that the company is focusing on expanding its presence in the emerging markets. IBM is also taking up projects geared towards information technology and infrastructure, Sam added.

International Business Machines’ stock is trading at 11 times earnings forecasts for 2011, which is lower than the market's multiple of 13.3 times. Barron’s believes that IBM’s stock deserves to trade at a higher multiple.