IBM: Focus On Cloud Computing Presents An Upside Of 20%
September 9, 2012
International Business Machines Corporation (IBM) has registered a price appreciation of 70% over the last five years, as compared to the Nasdaq’s 44%. The company enjoys recurring revenues and we predict a high sustainable growth rate for IBM. The company has been focusing on cloud computing, and is on track for its 2015 road map to grow revenues.
The expected growth rate for the next five years is ~11% per annum. Revenues from the company’s growth markets were up 8% YoY, adjusting for currency. We believe the stock has an upside potential of more than 20%...
Source: Googlefinance.com
International Business Machines Corporation provides technology products and services around the world. It is a well diversified company. IBM operates in five business segments, namely Global Technology Services, Software, Global Business Services, System and Technology, and Global Financing. Global Technology Services has the highest contribution to the company’s total revenue. The Software Segment has the highest gross profit margin of 88.4% in 2Q2012….
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