Bloomberg Anywhere Remote Login Bloomberg Terminal Demo Request


Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.


Financial Products

Enterprise Products


Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000


Industry Products

Media Services

Follow Us

Bloomberg Customers

Markets & Finance

Morgan Stanley Cuts IBM Estimates

Morgan Stanley cut its estimates for IBM (IBM).

Analyst Rebecca Runkle says hardware remains a low priority for 2002 IT spending, and adds that IBM may be experiencing a deterioration in signings for its Services group this quarter. She says mainframes remain the lowest hardware spending priority in 2002 based on the latest survey of corporate chief information officers. Runkle thinks the company is struggling to meet internal hardware targets; it initiated a 90-day payment deferral plan this quarter.

The analyst cut her $3.95 2002 EPS estimate to $3.85 and her $4.45 forecast for 2003 to $4.35. She feels her new estimates better reflect the current environment, and represent normal seasonality rather than a highly back-end loaded year. Runkle thinks consensus estimates for IBM are too back-end loaded. She is keeping her equal-weight rating on the shares.

blog comments powered by Disqus