Shares of IBM (NYSE:IBM) are slightly lower today after receiving an analyst downgrade. Logan Purk of Edward Jones changed his rating from Buy to Hold and stated that the shares are fairly valued.
Purk noted that IBM has done well to spin off low-growth businesses to now be able to achieve 4% to 6% revenue growth. However, its debt load and dividend payout reduce IBM’s financial flexibility going forward. As a result, the share price is unlikely to be boosted much further.
Overall, Wall Street analysts have a consensus price target of $143.56 on IBM stock, implying over 5% upside potential, as indicated by the graphic above.
