Summary

• IBM is upgraded to Buy from Hold following improved business momentum and valuation appeal.
• IBM's earnings multiple has contracted to ~22x forward P/E, presenting an attractive risk-reward profile.
• Six consecutive top and bottom line double beats signal accelerating business performance and potential for bullish rerating.
• I see IBM as undervalued, with upside ahead if its steady performance persists and the market assigns a higher multiple.

When I wrote my previous coverage on IBM (IBM) six months ago, I wasn't bullish. I was in the camp where investors needed patience. And my expectations came to fruition. The stock declined 11% since

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