View all newsletters
Receive our newsletter - data, insights and analysis delivered to you
  1. Technology
January 1, 1987

IBM SHARE PRICE SLIDES AS BROKERS LOWER THEIR ESTIMATES

By CBR Staff Writer

IBM’s stock price fell heavily in the two days before Christmas, shedding some $4, and marking time thereafter to close the year at around $121. The consensus was that revised full-year 1986 and 1987 earnings estimates by several brokers were responsible for the IBM share price’s dismal close to the year. Kidder Peabody now has one of the lowest 1986 estimates for the company on Wall Street, after reportedly cutting its figure to $7.95 from $8.70. Dean Witter Reynolds analyst Jay Stevens announced that he cut his 1987 earnings estimate to $9.25 from $10. Stevens cited the early retirement programme as one reason for a slow first half of 1987. Stevens also lowered his recommendation of IBM stock to a weak buy from and aggressive buy. Alex Brown’s computer analyst Otis Bradley lowered his 1986 estimate to $8.20 from $8.60, while his 1987 figure fell to $8.75 from $9.75. Montgomery Securities also decreased its estimates: 1986 is down to $8 even from $8.88, and the 1987 estimate is now in the range of $9.50 to $10.50 from $10 to $11. The street-wide cuts have led some market watchers to suggest that IBM is feeding analysts financial information, but the company would not comment on these rumours. For what it’s worth, our own forecast for 1986, given just before Christmas (CI No 589) is just shy of $7.95 for 1986, right at the bottom of the range.

Content from our partners
How businesses can safeguard themselves on the cyber frontline
How hackers’ tactics are evolving in an increasingly complex landscape
Green for go: Transforming trade in the UK

Websites in our network
Select and enter your corporate email address Tech Monitor's research, insight and analysis examines the frontiers of digital transformation to help tech leaders navigate the future. Our Changelog newsletter delivers our best work to your inbox every week.
  • CIO
  • CTO
  • CISO
  • CSO
  • CFO
  • CDO
  • CEO
  • Architect Founder
  • MD
  • Director
  • Manager
  • Other
Visit our privacy policy for more information about our services, how New Statesman Media Group may use, process and share your personal data, including information on your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.
THANK YOU