IBM (NYSE:IBM) Will Benefit from End Market Recovery

Assuming an end market recovery continues, IBM (NYSE:IBM) is in a place to strongly benefit from it.

UBS says, "We are encouraged by what appears to be a broad based recovery helped in part by new prod cycles & believe more consistency could drive multiple expansion. We expect IBM will continue to benefit from end mkt recovery though w/ Q4 typically a strong qtr (year-end/budget flush), we look for consistent fwd trends. Continue to favor H-P (NYSE:HPQ) given valuation discrepancy (HPQ trades a.t 8.9x FY11 EPS)."

UBS reiterates a "Neutral" rating on IBM (IBM), which was trading at $155.16, up $4.51, or 2.99 percent, as of 12:38 PM EST. UBS raised their price target on IBM from $144 to $158.