Goldman Sachs Reports Strong 2Q Revenue On IBM

According to Goldman Sachs, IBM IBM reported strong second quarter revenues of $26.67 bn and operating EPS of $3.09 versus our estimates of $25.02 bn and $2.96 and consensus of $25.35 bn and $3.03. Goldman Sachs said that the solid revenue growth (up 12% yoy at actual rates) had a currency benefit of seven points. “We are rolling our price target basis to CY2012E EPS from CY2011E EPS. Our 12-month price target increases to $170 from $160 based on the increase to our estimates and our shift to a CY2012 EPS basis. Our price target multiple remains 12X, in line with IBM's five-year average.” IBM closed yesterday at $175.28.