Merrill Lynch downgrades IBM profit forecast

Merrill Lynch lowered the profit forecast of IBM and pointed out that the sluggish economy caused enterprises to reduce technology investment, which hurt the business of IBM. Merrill Lynch downgraded the Q3 per share earnings forecast from US$1.13 to 96 US cents and the turnover forecast was lowered from US$23 bln to US$21.5 bln. The fund house also reduced the per share earnings this year from US$4.83 to US$4.55 and the figure for next year from US$5.43 to US$5.24. IBM ended up US$1.7, or 1.63% to close at US$105.7 last Friday.

Related stock : (NIL)