Deutsche Bank Rates Apple and IBM High among IT & Computer-Hardware Companies
Monday, September 12, 2021 4:44 PM



Analysts at Deutsche Bank states that with deteriorating macro conditions continuing, Apple Inc. (Nasdaq: AAPL) and International Business Machines Corp. (NYSE: IBM) have exhibited best in class earnings resiliency and performance in past cycles. They maintain their Buy rating on shares of both Apple and IBM, with price targets of $500 and $210, respectively.

DB analysts state that the Buy rating reflects IBM’s high recurring profit streams and its ability to wrap hardware with higher value/margin software and services contracts. They add that meanwhile Apple continues benefiting from enormous share gains and growing global penetration of its highly differentiated platform. They state that Apple and IBM have exhibited the most defensive characteristics. They add that Dell Inc. (Nasdaq: DELL) is better positioned this time than previous recession for company specific reasons. They state that Hewlett-Packard Co. (NYSE: HPQ), and Eastman Kodak Co. (NYSE: EK) are the most vulnerable to negative operating leverage and future earnings misses. They maintain a Buy rating on shares of Dell with a price target of $20, and Sell on shares of Hewlett-Packard and Eastman Kodak, with PT of $20 and $2, respectively.

 

On a year-to-date basis, Apple has a share performance of 15.96 percent, and as compared to Standard & Poor’s 500, it has an YTD share performance of -0.01 percent. IBM has an YTD share performance of 13.78 percent, and as compared to S&P 500, it has an YTD share performance of -0.01 percent. Dell has an YTD share performance of 5.09 percent and as compared to S&P 500, it has an YTD share performance of -0.01 percent. Hewlett-Packard has an YTD share performance of -42.19 percent, and as compared to S&P 500, it has an YTD share performance of -0.01 percent. Eastman Kodak has an YTD share performance of -39.55 percent and as compared to S&P 500, it has an YTD share performance of -0.01 percent.

 

Shares of Apple were down 0.66 percent or $2.50 to trade at $374.98. Shares of IBM lost 0.65 percent or $1.05 to trade at $160.32. Shares of Dell added 0.50 percent or 7 cents to trade at $14.04. Shares of Hewlett-Packard were down 0.82 percent or 19 cents to trade at $22.35. Shares of Eastman Kodak lost 3.14 percent or 9 cents to trade at $2.78.


 

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