TECHNOLOGY - June 3, 1994
From Times Staff and Wire Reports
Dean Witter Cuts IBM Rating: An analyst cut the rating on International Business Machines Corp. to “neutral” from “accumulate,” market sources said, sending the stock down sharply. Jay Stevens, the analyst, was not available for comment. IBM stock closed off $1.50 to $62 on the New York Stock Exchange. According to traders, Stevens said IBM’s stock is selling at 19.5 and 13.4 times 1994 and 1995 earnings, respectively, and that it is likely to encounter some selling in the mid-$60s range. Traders also said Stevens sees IBM earnings in the second half of 1994 coming in line with aggressive Wall Street estimates, after a strong second quarter, which ends June 30.
