{"id":698732,"date":"2010-03-23T10:36:00","date_gmt":"2010-03-23T14:36:00","guid":{"rendered":""},"modified":"2026-10-04T11:40:16","modified_gmt":"2026-10-04T15:40:16","slug":"ibm-works-best-as-long-term-investment","status":"publish","type":"post","link":"https:\/\/mereja.com\/index\/698732","title":{"rendered":"IBM works best as long-term investment"},"content":{"rendered":"

As a long-term stock, IBM Corp.<\/a> is still one of the best picks for investors. Near term, it may not be the best bet, says a new report from RBC Capital Markets. <\/p>\n

"We believe that prospects for an improving economy and an improving IT sector suggest that investors seek outperformance in higher-beta opportunities in the near term," said analyst Amit Daryanani in a note to clients.  <\/p>\n

"The need for a conservative investment, such as IBM, works best when the demand is highest for such an investment \u2013 this is during periods of market dislocations." <\/p>\n

With almost 80% of its business in services and software, IBM has the best mix of technology businesses in the enterprise sector, the analyst said. Notably, 50% of the company's revenues and 62% of its profits are earned on a recurring basis.  <\/p>\n

As a result, IBM\u2019s margins held up relatively well versus those of its peer group during the financial crisis, not to mention the tech bust earlier last decade. <\/p>\n

However, based on expectations for a significant rebound in IT spending in 2010,
\nMr. Daryanani thinks hardware-centric names like Hewlett-Packard Co., EMC Corp. and Dell Inc., with
\ngreater early cycle exposure and a higher degree of earnings leverage
\nshould outperform IBM in the near term. <\/p>\n

He initiated coverage on IBM with a Sector Perform rating and $150 price target. <\/p>\n

"We believe that IBM's current valuation represents a fair price for investors with a long-term perspective," he wrote. <\/p>\n

David Pett<\/a>
  <\/p>\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

As a long-term stock, IBM Corp. is still one of the best picks for investors. Near term, it may not be the best bet, says a new report from RBC Capital Markets. "We believe that prospects for an improving economy and an improving IT sector suggest that investors seek outperformance in higher-beta opportunities in the […]<\/p>\n","protected":false},"author":2571,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"advanced_seo_description":"","jetpack_seo_html_title":"","jetpack_seo_noindex":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[4821],"tags":[],"class_list":["post-698732","post","type-post","status-publish","format-standard","hentry","category-news"],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9NivD-2VLS","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/mereja.com\/index\/wp-json\/wp\/v2\/posts\/698732","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/mereja.com\/index\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mereja.com\/index\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mereja.com\/index\/wp-json\/wp\/v2\/users\/2571"}],"replies":[{"embeddable":true,"href":"https:\/\/mereja.com\/index\/wp-json\/wp\/v2\/comments?post=698732"}],"version-history":[{"count":1,"href":"https:\/\/mereja.com\/index\/wp-json\/wp\/v2\/posts\/698732\/revisions"}],"predecessor-version":[{"id":799913,"href":"https:\/\/mereja.com\/index\/wp-json\/wp\/v2\/posts\/698732\/revisions\/799913"}],"wp:attachment":[{"href":"https:\/\/mereja.com\/index\/wp-json\/wp\/v2\/media?parent=698732"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mereja.com\/index\/wp-json\/wp\/v2\/categories?post=698732"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mereja.com\/index\/wp-json\/wp\/v2\/tags?post=698732"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}