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Technology Stocks : IBM -- Ignore unavailable to you. Want to Upgrade?

To: Hugh W. who wrote (2236)	1/21/1998 12:00:00 PM
From: Gary Yu	Read Replies (1) \| Respond to of 8220

Wednesday January 21, 11:32 am Eastern Time RESEARCH ALERT - IBM lowered, EPS cut NEW YORK, Jan 21 (Reuters) - Lehman Brothers cut its rating on International Business Machines Corp shares to neutral from outperform and Donaldson Lufkin & Jenrette lowered the stock to market perform from buy, a market source said on Wednesday. -- Merrill Lynch also said it reduced its 1998 earnings estimate on IBM to $6.60 per share from $7.50 per share and lowered its price target to $120 per share from $125 a share. But the firm maintained its near-term accumulate and long-term buy rating on the stock. -- IBM reported fourth quarter earnings of $2.11 per share on a diluted basis, below Wall Street forecasts of $2.15 per share. It also said its first quarter earnings would be down from a year ago by as much as $0.15 per share. -- ''In view of cautionary comments we expect IBM's shares to retrace a significant portion of its recent gains,'' Lehman analyst George Elling said in a research note confirming the firm's downgrade. ''Accordingly, we now believe IBM's intermediate term stock price performance could be lackluster and this has lowered our investment rating.''