IBM price target raised to $217 from $182 at Morgan Stanley

Morgan Stanley raised the firm’s price target on IBM to $217 from $182 and keeps an Equal Weight rating on the shares. The firm notes that its new $217 target implies 7% downside, but it expects IBM to trade between its base and bull cases in the near-term, as Q3 results and Q4 guidance are “likely to meet or slightly beat” Street estimates. The firm, which doesn’t see much that is likely to derail IBM’s momentum at Q3 earnings, thinks Redhat decelerating is the potential risk in Q3, the analyst added in a preview note.