(CercleFinance.com) – Morgan Stanley on Thursday raised its recommendation on IBM stock, which it is raising from ‘online weight’ to ‘overweight’, with a price target raised from 147 to 150 dollars.
In a research note, the US research department is increasingly concerned about the possibility of an economic slowdown in the United States which would put pressure on the technology sector.
According to Morgan Stanley, IBM is precisely well positioned to face a possible downturn in the economy.
‘IBM should outperform in the context of a reduction in technology budgets, knowing that half of its turnover comes from recurring sources displaying a defensive profile’, explains the New York firm in its study.
‘In fact, IBM’s stock price is even inversely correlated, from a historical point of view, to the evolution of the PMI activity indices and its stocks tend to outperform the technology sector at the end of the cycle. ‘, he concludes.
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