By Christiana Sciaudone
Investing.com -- IBM (NYSE:IBM) fell more than 6% as earnings turned out to be less swell than expected, and analysts lowered target prices.
Bank of America (NYSE:BAC) said the company is transitioning and 2021 will reflect investments, prompting a drop in its price target to $153 from $155. The stock is trading around $117.75. It did, nonetheless, reiterate a buy rating, citing strong growth that can drive share gains in hybrid cloud, investment that will also drive growth and compelling valuation with an attractive dividend yield of 5%, according to StreetInsider.
The company reported earnings per share of $2.58, which met the estimate, on sales of $17.56 billion compared to the expected $17.54 billion.
Cloud & Cognitive Software revenue rose 7%, with total cloud revenue of $6 billion, up 19%. For the past 12 months, total cloud revenue rose 22%, to $24.4 billion. Red Hat sales rose 17%, and IBM reported gross profit margin of 48%, up 180 basis points.
Shares are down 12% since the start of 2020, which has been a bumpy ride. Three analysts say buy, six say hold and one says sell, according to data compiled by Investing.com.
Meanwhile, Credit Suisse (SIX:CSGN) dropped its price target to $160 from $161, also maintaining a buy-equivalent rating. Evercore ISI maintained an in-line rating and dropped its price target to $135 from $137, according to StreetInsider.