Analyst David Grossman says while keeping his $0.82 first quarter earnings per share estimate, he is migrating to a more conservative posture for the rest of year and 2003. He doesn't think IBM is losing share; however, his previous $4.75 2002 EPS estimate assumes a more significant improvement in demand in the second half of 2002 than with which he is comfortable.
Also, Grossman says certain recurring non-operational items will likely have a modestly negative impact in 2002, requiring even stronger performance out of IBM's core business to drive growth. He cut his $4.75 2002 EPS estimate to $4.55, and trimmed the $5.35 2003 estimate to $5.25. He keeps his buy rating, and says IBM is an attractive long-term core technology holding.