Barclays PLC analysts have initiated coverage of the issuer’s shares with an “Overweight” rating and a target price of 350.00, above the current 315.00 level. Experts point to the corporation’s strong market position, citing high revenue consolidation in the software segment, which could support more significant growth in the future, as well as recent contracts with the Department of Defense and the Department of Commerce. The first contract is an amended version of an earlier 46.0 million dollar agreement covering consulting and technical support in civil engineering resource allocation. The updated version increases the contract value to 155.5 million dollars while keeping the remaining terms unchanged. The second agreement provides for 1.0 billion dollars in investment to be used for the construction of a quantum chip manufacturing facility.
The company’s second-quarter financial report will be published in mid-July. Revenue is expected to increase from 15.92 billion dollars to 17.84 billion dollars, above 16.98 billion dollars recorded in the same period last year, while earnings per share may rise from 1.91 dollars to 3.02 dollars, compared with 2.80 dollars a year earlier. The latest dividend payment took place in March at an indexed rate of 1.68 dollars per share, up from 1.67 dollars last year. The yield was around 2.27%, well above the sector average of 0.65% per year. The next payment is scheduled for June 10 at 1.69 dollars per share, or a yield of 2.92%.
Support and resistance levels
On the daily chart, the trading instrument is moving above the resistance line of the descending channel with boundaries at 300.00–218.00.
Technical indicators are strengthening the buy signal: the fluctuation range of the Alligator indicator’s EMAs is expanding, while the AO histogram is forming corrective bars in positive territory.
Resistance levels: 327.50, 350.00.
Support levels: 307.50, 276.00.
IBM Corp. trading scenarios and forecast
Long positions may be opened after the price rises and consolidates above 327.50, with a target at 350.00. Stop-loss — 315.00. Expected timeframe: 7 days or more.
Short positions may be opened after the price declines and consolidates below 307.50, with a target at 276.00 and a stop-loss at 320.00.
Scenario
| Timeframe | Weekly |
| Recommendation | BUY STOP |
| Entry point | 327.55 |
| Take Profit | 350.00 |
| Stop Loss | 315.00 |
| Key levels | 276.00, 307.50, 327.50, 350.00 |
Alternative scenario
| Recommendation | SELL STOP |
| Entry point | 307.45 |
| Take Profit | 276.00 |
| Stop Loss | 320.00 |
| Key levels | 276.00, 307.50, 327.50, 350.00 |
