International Business Machines Corp
IBM: XNYS (USA)
| Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
|---|---|---|---|
| $914.00 | Jgvdb | Tvl |
IBM Earnings: Kicks Off 2024 With Strong Financial Results and Deal to Buy HashiCorp
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We are maintaining our $139 fair value estimate for narrow-moat IBM after the firm started 2024 on the right foot, with solid first-quarter sales and profitability, and reaffirmed its guidance for the remaining three quarters of the year. IBM also announced its intention to acquire HashiCorp for roughly $6.4 billion in an all-cash deal. While this acquisition does not affect our IBM valuation, we think HashiCorp's cloud infrastructure software has synergies with IBM’s existing products, especially Red Hat.