Buy IBM (NYSE:IBM) Says Capstone Investments

IBM (NYSE:IBM) is on the radar of Capstone Investments analyst Shebly Seyrafi, who placed a "Buy" on the company.

Seyrafi is particularly impressed with the commitment of IBM's management to growing profits as their top priority.

Also of note, according to Seyrafi, is IBM's ability to set a goal for profits and meet it, citing the company's 2007 goal of generating earnings of $11 a share and exceeding it.

He mentions that based on IBM saying they want to earn $20 a share by 2015, up from $11.52 in 2010.

With a goal of spending $20 billion in M&A through 2015, earnings will be driven by acquisition, but also apparently in some companies with solid margins.

That would make sense, as the majority of acquisitions IBM is targeting are projected to be software companies.

Capstone estimates 2011 revenue to grow to $105 billion this year for IBM, with EPS of $13.1 billion.

Capstone has a "Buy" rating on IBM, which closed Monday at $164.82, up $0.82, or 0.50 percent. They have a price target on IBM of $190.