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Sales Disappoint, but IBM Still Moving in Right Direction

We reiterate our $168 fair value estimate and narrow economic moat rating for the firm.

Mentioned:

Andrew Lange: IBM's first-quarter results came mostly in line with expectations, although sales slightly disappointed after the company's storage hardware business had some sales execution issues. We think the sales executions are down to the comparative nature of the industry.

In addition, the company also announced restructuring to its sales and cost structures. We think that this restructuring really follows the company's transition toward higher value, enterprise IT services--what the company deems as strategic imperatives.

Andrew Lange does not own shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.