Warren Buffett Squirms as Credit Suisse and Jefferies Cut IBM Targets to $110

Technology

Published: January 20, 2016 11:35 am

Last Updated: January 13, 2020 2:49 pm

International Business Machines Corp. (NYSE: IBM) is developing a history of disappointing its investors with just about each and every earnings report. This time it is guidance for 2016 being lowered, and investors have to seriously start expecting that CEO Ginni Rometty’s job may be on the line.

24/7 Wall St. has noticed how analysts keep going ever lower on their price targets and views of IBM. It used to be, a long time ago, that IBM was rising and some analysts thought it could rise well over $200. Now we have seen the two most negative analysts with $125.00 price targets go even lower — to $110.00. This is even making the newer bearish case for DJIA 14,961 look less and less ludicrous.

There is a slight difference here in the negativity on IBM. Jefferies made its cut to $110.00 ahead of earnings. Credit Suisse, which had been the most pessimistic all the way down, lowered its target to $110.00 on Wednesday morning.

If there is one shareholder who is squirming about the prospects for IBM, it is Warren Buffett. This position has kept pounding the unrealized losses for Berkshire Hathaway Inc. (NYSE: BRK-A). Buffett generally was against being a big technology stock investor, and maybe he should have stayed that way. Buffett’s unrealized losses were $2 billion at the end of September, and IBM shares were trading at $143.62 on the last day of September. IBM is starting to make its 2016 bullish and bearish outlook seem like a fairy tale.