This tech giant is charting a new path

Article Excerpt

IBM originally began operating in 1911 as the Computing-Tabulating-Recording Co. It changed its name to IBM in 1924. Over the decades, the company has shifted its focus in response to the rise of new technologies and trends. IBM is once again transforming itself as a leading provider of cloud-based computing services. Its “hybrid cloud” technology runs programs on remote servers as well as on the client’s own computers. That’s more advanced than simply offering online storage services, and it should give IBM an edge over other cloud competitors. As part of its new direction, IBM recently spun off some of its legacy businesses as Kyndryl. We like this new firm’s prospects, but as with most spinoffs, we feel Kyndryl will stay in a narrow range until it builds a following with brokers and analysts. INTERNATIONAL BUSINESS MACHINES CORP. $129 is a buy. The company (New York symbol IBM, Manufacturing & Industry sector; Shares outstanding: 896.3 million; Market cap: $115.6 billion; Dividend yield: 5.1%; Takeover Target Rating: Medium;…