He suggested additional ways that IBM could continue its momentum and close the gap on companies that have higher beta, including Apple and EMC.
Up 9 percent year-to-date, IBM could stand to drive a new product cycle and improve some things in hardware, Reitzes said. If changes such as these are made, and the U.S. economic recovery ramps up sooner rather than later, IBM’s upside could continue to grow, maybe even catching up to some of the higher names by early 2013, Reitzes said.
For now, however, IBM remains a safe play, especially compared to a company such as Dell, he said.
“I see this as a Steady Eddie,” Reitzes said. “We’re a little bit more into risk actually this year than we were, so I think an equal weight is a right way to go.”
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Disclosure information was not available for Ben Reitzes or his company.