IBM Hits $200 Milestone, Momentum Could Continue: Analyst

Fresh off hitting a $200 mark earlier on Monday, an all-time intraday high for the company, International Business Machines could continue its momentum and reach a higher price target by 2013, according to Barclays Capital technology hardware analyst Ben Reitzes.

Reitzes told CNBC he likes IBM for its performance over the past five years, despite the difficult economic times.

“They’ve outperformed vastly, and they’ve done a great job of moving up the stack to the higher-value revenue streams,” Reitzes said.

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.