International Business Machines (IBM) $34 billion acquisition of software firm Red Hat has reportedly received unconditional approval by EU antitrust regulators on Thursday.
IBM shares closed flat at $138.52 in New York on Thursday. The stock registered an intraday low at $137.95, which has been a price level not seen since June 19th ($136.24).
Shares of International Business Machines have risen 21.86% so far in 2019 compared with a 16.68% gain for the benchmark index, S&P 500 (SPX).
In 2018, IBM’s stock went down 25.91%, thus, it underperformed the S&P 500, which registered a 6.24% loss.
In a statement, the European Commission announced that no competition concerns would be raised as a result of the agreement.
The deal is expected to expand IBMs subscription-based software offerings and to allow the tech giant to mitigate the effect of shrinking software sales and waning demand for mainframe servers.
According to CNN Money, the 17 analysts, offering 12-month forecasts regarding IBM’s stock price, have a median target of $150.00, with a high estimate of $173.00 and a low estimate of $115.00. The median estimate represents an 8.29% upside compared to the closing price of $138.52 on June 27th.
The same media also reported that 11 out of 20 surveyed investment analysts had rated IBM’s stock as “Hold”, while 6 – as “Buy”. On the other hand, 2 analysts had recommended selling the stock.
Weekly Pivot Levels
By using the traditional method of calculation, the weekly levels of importance for International Business Machines (IBM) are presented as follows:
Central Pivot Point – $137.81
R1 – $140.93
R2 – $142.65
R3 – $145.77
R4 – $148.88
S1 – $136.09
S2 – $132.97
S3 – $131.25
S4 – $129.52
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