CSFB thinks IBM will miss the revenue number...
Regards,
John
December 15, 2000
Dow Jones Newswires
IBM Can't Avoid Industry Downturn, CSFB Analyst Says
Dow Jones Newswires
NEW YORK -- International Business Machines Corp. (IBM)
can't avoid "deteriorating industry fundamentals" in the
fourth quarter, and its revenue could fall short of
analysts' expectations, Credit Suisse First Boston analyst
Kevin McCarthy said Friday.
In a research note, McCarthy said there is softness in the enterprise and commercial markets for IBM's computer products and services. McCarthy estimated IBM's fourth-quarter revenue will be $25.75 billion, short of the Wall Street consensus, which he said was $26.75 billion.
IBM shares recently traded at $87.44, down $5, or 5%, on volume of 8.6 million, compared with the daily average of 7.5 million shares. McCarthy has a "hold" rating on the stock, with a price target of $85.
McCarthy's cautious comments came in a note outlining details of IBM's newest G7 version of its 2/390 mainframe computers, branded eServer z900, which began shipping Thursday. IBM also began shipping an enhanced model of its Shark storage-area-network server, McCarthy said.
McCarthy said the eServer z900 won't contribute significantly to results until the second quarter of 2001. He said the new product shipments are "in line with expectations." |
