International Business Machines Corp
IBM: XNYS (USA)
Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
---|---|---|---|
$756.00 | Rbnghcw | Xykl |
IBM Earnings: Kicks Off 2024 With Strong Financial Results and Deal to Buy HashiCorp
We are maintaining our $139 fair value estimate for narrow-moat IBM after the firm started 2024 on the right foot, with solid first-quarter sales and profitability, and reaffirmed its guidance for the remaining three quarters of the year. IBM also announced its intention to acquire HashiCorp for roughly $6.4 billion in an all-cash deal. While this acquisition does not affect our IBM valuation, we think HashiCorp's cloud infrastructure software has synergies with IBM’s existing products, especially Red Hat.