IBM (IBM) is expected to overcome Wall Street pessimism by reporting in-line Q4 results and issuing in-line to “better than feared” 2024 guidance next week, Morgan Stanley said in a note Tuesday.
Morgan Stanley said it expects IBM to project a 3% to 5% year-over-year increase in its 2024 revenue and around $11 billion in free cash flow for 2024, in-line to higher than consensus and buyside expectations.
The analysts said while investors and other analysts have largely priced those 2024 forecasts into IBM’s share price, the company’s “resilient” fundamentals coupled with an accelerating order book for artificial intelligence applications support the company’s post-earnings momentum.
IBM is scheduled to report its Q4 results and issue its 2024 expectations on Jan. 24.
Morgan Stanley raised its price target on IBM by $3 to $152 while keeping its equalweight stock rating,